Lopsided Execution Of The Otherwise Laudable Hydraa Initiative Will Cost TG, Revanth Dearly

A leading association representing the Hyderabad real estate sector had a meeting of its members recently. There were many discussions, arguments and debates. But the central theme revolved around only one subject-the Hyderabad Disaster Response and Asset Protection Agency (Hydraa).

Hyderabad real estate saw a boom time till recently. All those who attended that meeting have enjoyed the fruits of that boom. They were all confident that this trend would continue. But the key sector that not only provides large-scale employment opportunities, but also generates tonnes of money for the government, is in doldrums in the City of Pearls now.

Ever rising prices of properties, elections to the Telangana Assembly and Lok Sabha, and revival of Amaravati capital city in Andhra Pradesh, took sheen off Hyderabad’s property market.

It was around that time that out of the blue came the Hydraa thunderbolt, the pet project of Telangana Chief Minister Anumula Revanth Reddy.

Going by the way the members of the association spoke, they are not against Hydraa per se. But they are worried about the way the demolitions are being carried out across the city. According to them, these demolitions have sent shockwaves among property buyers and there is a widespread feeling that in the name of encroachments into lakes, the Telangana government is even demolishing buildings for which it has given permissions in the past.

“How can the government demolish buildings for which it has given permissions?” was the common refrain. The real estate developers are a worried lot now as they strongly feel that a market slump will further deepen in the coming months. Further, because of lack of clarity, genuine real estate projects are also facing problems. People who have booked apartments and villas in under construction projects are also a worried lot.

Many of them are flocking to the offices of developers and seeking clarity on whether the project in which they have booked property is on Hydraa’s radar. Some customers are even taking undertakings from the developers that they will get an alternative property if Hydraa demolishes the one in which they have put in their hard-earned money.

Further, as the real estate sector is one of the key drivers of economic growth for Telangana, this deep slump in property transactions is also taking a big toll on other related segments as liquidity has come down significantly. So, there is a significant economic cost to the State’s economy due to the Hydraa effect. Besides, there is a widespread political backlash against the Revanth Reddy government.

Why is there this commotion about Hydraa despite its laudable activities? Lopsided execution is the key reason.

Encroachments have been going on in Hyderabad for the past several decades. So are illegal constructions and widespread violations of construction norms. That means it’s a deep-rooted problem. The corrupt political class and officialdom also encouraged it over the years. The issue is very complex, to say the least.

So, the Revanth government should immediately come out with a detailed policy framework on all existing encroachments in the State and initiate steps to stop future violations. It should also be ready to pay compensation or provide alternative properties if the poor and middle class lose their properties. This exercise should be done in a most transparent manner.

Further, the State government should immediately disband lopsided initiatives such as Layout Regularisation Scheme (LRS) and Building Regularisation Scheme (BRS), which have created a big mess. When the government is hell-bent on eliminating encroachments, how can it regularise illegal layouts and buildings? It is preposterous.

Moreover, the government should strictly implement all the building construction norms, including adequate setbacks in individual buildings. Flooding is not only because of lake encroachments, but also due to the encroachments of parks, roads and drainage systems. Illegal floors in independent buildings are also causing immense damage to the city's urban ecosystem and ecology.

The town planning section and other wings that give building permits are soaked in corruption. Unless this unbridled corruption is rooted out, encroachments will continue unabated. Building construction norms will be violated with impunity.

So, to deal with encroachments with iron hand, all property violations should be made criminal offences with builders and landowners as prime accused. Besides, the Revanth government should also bring in a much-needed Floor Space Index (FSI). All other major Indian cities have FSI limits. Hyderabad is the only major city where unlimited FSI is allowed.

For the uninitiated, FSI, which is must for proper urban planning and real estate development, is the ratio that restricts a building’s size to the size of the plot on which it is being constructed. For instance, if FSI is limited to two, one can construct 400 square yards (3600 sq.ft) of space on 200 square yards of plot. This FSI ratio can be calculated by dividing the total built-up area of a building by the total area of the plot. Hyderabad needs FSI restrictions for its overall well-being. Further, FSI restrictions will fuel horizontal growth of the city. As Hyderabad has abundant open land on all sides and an excellent infrastructure across the city, horizontal growth is an ideal choice for it.

Nevertheless, the bottom line is simple. It’s not the responsibility of officials to take political ramifications into account when major decisions are made. This is so because officials will continue to be a part of the government till they retire, irrespective of whichever political party is in power. Therefore, it is the sole responsibility of the political party or politicians in power, who should focus on the political ramifications of the decisions that the government takes.

The billion-dollar question now is whether that’s happening in Telangana. As of now, it is not happening. This is understandably the reason for the backlash and the hue and cry against the State government over Hydraa activities. That is the reality.

Chief Minister Revanth Reddy will pay a heavy political price in 2028 if this trend continues. But he has ample time to go for a course correction. Will he do it?