Telangana HC suspends order cancelling HMDA’s e-auction of lands, greenlights process pending final decision

“There should be suspension of the impugned order…to the extent of the setting aside of the e-auction dated 10.08.2023 which was conducted by the appellant,” the bench ordered.

The single-judge bench had declared the e-auction of the prime land parcel at Budvel in Rajendra Nagar mandal illegal and set aside the entire sale process, citing the failure of government respondents to follow due process. The e-auction, conducted on August 10, 2023, was deemed “arbitrary and illegal”.

Advocate Peri Prabhakar, representing petitioner/respondent Korani Ravinder, argued that these lands continued to be assigned lands meant for cultivation and that the auction was conducted ignoring the rights of the assignees. He claimed that the Government had coerced most of the 66 assignees into relinquishing their lands, about four to five acres each, in exchange for 800 square yards of plotted lands. He also stated that the Government had auctioned 250-odd acres of these lands, reportedly earning Rs 4,000 crore, whereas even the 26 acres of land promised to the 66 assignees were not fully delivered.

Advocate-General A Sudarshan Reddy informed the bench that any orders to suspend the e-auction would force the Government to return amounts to the bidders, increasing the financial burden on the state.

In its order on Tuesday, the bench directed the district collector of Rangareddy to conduct a hearing and make a final decision on the petitioners’ representations by December 12, 2025. A copy of the decision, along with reasons, must be furnished to the petitioners by December 15, 2025, the bench ordered.

‘No action pursuant to the e-auction’

“The concerned officers of the HMDA shall not take any steps pursuant to the e-auction in relation to the subject property i.e. 4 Acres 19 guntas of the land…, until two weeks after the District Collector decides the representations of the writ petitioners,” the bench stated.

The bench noted that the final decision on the e-auction itself can be taken by the state authorities only after December 31, 2025, and two weeks after the district collector decides on the representations.

The court also noted that the HMDA had already overshot the time frame directed by the single-judge bench for considering the petitioners’ representations with sufficient notice and opportunity for hearing, underscoring the urgency for the new, strict deadlines.

The single-judge bench had directed the district collector to pass final orders in accordance with the law, ensuring the petitioners are put on notice and afforded a proper opportunity to be heard, and also to complete the entire exercise within four weeks from the date of the order, May 2, 2025.

The associated writ appeal is now listed to be heard in the first week of January 2026.