GOVERNMENT OF ANDHRA PRADESH

ABSTRACT
Layouts and sub-division of lands and land development under the jurisdiction of Municipal
Corporation and out side Municipal Corporations limits and falling under the jurisdiction of
Urban Development Authorities guidelines for taking effective action on the sub-division of lands
made Issued.
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HOUSING MUNICIPAL AND URBAN DEVELOPMENT (M1) DEPARTMENT
G.O. (MS) No.65 M.A.

Dated: 05-02-1987
Read the following: -

G.O. (MS) No.1095 M.A., dated 24-08-1965

G.O. (MS) No.1034 M.A., dated 02-12-1966
G.O. (MS) No.377 Panchayat Raj (Samithi II) Department dated: 12-10-1973.
ORDER
It has been observed by the Government that the layouts of sub-division of lands within
the jurisdiction of Municipal Corporations are being made by the land owners and real estate
developer without approval from the Municipal Corporations as required under sections 388 to
396 of Hyderabad Municipal Corporation Act, 1955 and under Municipal Corporation of
Hyderabad layout Rules 1965 issued in the G.Os first and second read above. Similarly the subdivision of lands out-side the Municipal Corporations limits and falling under the jurisdiction of
development areas of Urban Development Authorities in several cases are being made unauthorisedly by the land owners and real estate developers. The plots are being sold to the
persons who are in need of shelter. Further the Government are noticed that basing on the
tentatively approved layouts which indicates the road pattern and reserved sites only and which
are not approved layouts as per provisions of Hyderabad Municipal Corporation Act, 1955 the
land owners or real estate developers sub-divided the land arbitrarily in the manner desired by the
purchasers and sold the plots by mis-leading the purchasers as if the tentatively approved layouts
are actually approved one. The Municipal Corporation of Hyderabad really came to know about
these illegal sales only when the purchasers of the plots come forward for the grant of building
permissions and in many cases the plots carved out are sub-standard and are in-violation of layout
rules and which will not be useful for building without violating the zoning regulations and
building rules etc., in many cases the reserved sites in the lay-outs earmarked for community
purposes have also been sold out as residential plots and even the mortgaged plots to Municipal
Corporation of Hyderabad in lieu of payment of development charges for the layout areas and
undertaken for development. The bank guarantees given to Municipal Corporation of Hyderabad
for a certain period by the lay-out owners for providing the roads and other amenities in the
approved layout are not being extended although the roads and other amenities are not provided
and in these type of layout areas, the Municipal Corporation of Hyderabad in many cases has
issued building permissions after collecting the proportionate betterment charges from each of the
plot holder and who came forward for building permission. In all such areas where the buildings
have come up with no roads and amenities, in course of time, the owners and occupants of plots
who begin to pay property tax are raising hue and cry and rather demanding Municipal
Corporation of Hyderabad for providing the roads and other amenities by spending from its
general funds, which should have been provided by the owner of the layouts or at the cost of plot
owners.
.
2.
The Government have considered these irregularities and others happening in subdividing
the lands into plots with-out proper approval under the provisions of Hyderabad Municipal
Corporation Act, 1955 and Municipal Corporation of Hyderabad layout rules 1965 and to avoid

the reoccurrence of these irregularities, the following guidelines are issued to the Municipal
Corporation / Urban Development Authorities for follow-up action and to arrest the growth of unauthority lay-outs and sub-divisions of land made without approval.
ACTION ON THE AUTHORISED LAYOUTS BY MUNICIPAL CORPORATIONS:
1.
As soon as the application for the approval of layout for the sub-division of the land for
building purpose is received while scrutinising there with reference to the rules 3 to 11 of the
layout rules the following aspects also should be considered :a) Whether the land use proposed in the layout is as per the master plan or zonal
Development plan.
b) Whether the road pattern as proposed by the Applicant is as per the Master Plan or zonal
Development plan and layout rules.
c) Whether the land covered by the lay-out has an access from an existing private or public
street with specified widths;
If the above conditions are not satisfied, instead of resorting to prolonged correspondence
with the Applicant for obtaining required particulars the application shall be rejected while
pointing out clearly all the defects that are found in the application with the proposed layout.
When the party resubmits the application with all required particulars, then the Municipal
Corporation may proceed with the preparation of suitable lay-out for the land belonging to the
applicant so that it will satisfy all the provisions of the Hyderabad Municipal Corporation Act and
the rules framed thereunder, the Master plan and zonal Department plans. If the applicant is other
than the owners of the land, he should produce the registered power of attorney empowering him
to do every thing on behalf of the owner of the land under reference such that he or she can not
dis-own any of the action on him or on his power of attorney for any of the irregularities.
2(A) If the owner is prepared to undertake the formation of the road and provide other
amenities including the development of the park and play ground as per the specification
indicated by the Municipal Corporation, the Bank Guarantee from scheduled bank shall be
provided by him which shall cover for a period not less than three years and there shall be specific
condition in the permission granted by the Municipal Corporation that the party shall execute all
the works according to the specified specifications within a period of one year and failing which
the permission granted to him will be deemed to have lapsed and all the incomplete works will be
got executed by the corporation at the cost of the owner.
(B) The corporation should also take the written undertaking on required stamp paper
that he or she shall not sell any of the plots till the roads are formed the parks and play-grounds
are developed and other amenities provided in the layout as per the approved lay-out according to
the specification to be laid down by the Municipal Corporation of Hyderabad. The permission for
the construction of the building in any approved layout area shall be given only after the
Commissioner of the Municipal Corporation satisfied himself that the roads are formed and
amenities are provided as per the approved lay-out. The owner-ship of the piece of land set apart
for community purposes in the lay-out shall be transferred in favour of the Municipal Corporation
while releasing the lay-out. However, the owner of the layout shall develop the parks and playground along with other developments like formation of roads and provision of amenities like
Electric and water supply and sewerage etc., however small the layout area may be, there shall be
no relaxation with regard to provision of open-spaces.

(C) PAYMENT OF COST OF DEVELOPMENT OF LAND:

As soon as the lay-out is ready for sanction by the Municipal Corporation, a notice shall be
issued to the party to report the cost of development in full to the Municipal Corporation. The
layout may be sanctioned only after receipt of the cost of development in full and in such a case
building permissions also may be granted provided the buildings are to come up as per approved
layout

(e)

(a)

If the party is unable to pay the cost of development, he shall mortgage the part of
the land equivalent to the cost of development charges. The lay-out may be
sanctioned as soon as the mortgage deed is executed. The cost of land shall be
worked out on the basis of the values fixed by the Registration Department for
the land in the area of the lay-out for the purpose of registering the transfer of
land. The person who has thus mortgaged his land shall be in a position to pay
the full cost of development charges within a period of six months or till such
extended period which shall not exceed six months. The building permission
shall be granted only after the receipt of the development charges in full;

(b)

If the owner of the layout is prepared to undertake the formation of the roads,
development of parks and playgrounds, provision of amenities like water and
electric supply by himself according to the specifications indicated by the
Municipal Corporation, before the sanction of the layout is accorded by the
Municipal Corporation, he shall provide bank guarantee for an amount equivalent
to the cost of development and the period of bank guarantee shall not be less than
three years. The permission to be given in this case shall include specific
condition and an undertaking on the required stamp paper, that the party shall
complete the execution of all the works like formation of roads, development of
parks and playgrounds, provision of amenities like water and electric supply,
avenue tree planting etc., according to specifications of the Municipal
Corporation of Hyderabad within a period of one year from the date of
sanctioning of the layout. If he fails to perform all these obligations within one
year, the permission given to him is deemed to have lapsed and all the incomplete
works and the works not executed, shall be got executed by the Municipal
Corporation at the cost of the owner. No building permission shall be granted till
all the development works are executed by the owner or got executed by the
Municipal Corporation.

The cost of development of land shall include

(i)
(ii)
(iii)
(iv)
(v)

The cost of formation of roads with black topping, construction of culverts,

bridges, drains, foot-paths etc;
The development of parks and play-grounds along with avenue tree
plantations;
The cost of provision of water and electric supply;
The cost of sewerage. The sewerage line invariably shall be got done by the
Municipal Corporations agreed for the execution of the works referred to in
items (i), (ii) and (iii);
The cost of external developments like the formation of new road or widening
of the existing roads leading to the layout colony, the replacement of the water
and electric mains leading tot eh layout areas and any other works which are to
be carried out by the Municipal Corporation out-side the layout area so as to
ensure the provision of the amenities to the required standards. This amount
shall not be less than Rs.10 per square meter.

II. PROCEDURE TO BE FOLLOWED IN DEALING WITH THE UN-AUTORISED LAYOUTS WITHIN MUNICIPLA CORPORATION LIMITS:
(A)
Several instances have come to the notice of the Government wherein People
resorted to unauthorised sub-division of the lands with sub- standard plots and roads and selling
them to the Persons without any approved layout. Such cases have come to the notice of the
Municipal Corporations only when the Persons who purchased plots in such unauthorised layouts
had come forward to apply to Municipal Corporation for the grant of building permission. It is
observed that in most cases Municipal Corporations had cared for the purchasers of the plot only
and never bothered to examine as to how area covered by such unauthorised lay-out world affect
the existing roa d pattern, nature of developments and the existing services in the surrounding
areas. In most of such cases, the Municipal Corporation without any serious action against the
owner who is responsible for such unauthorised layout tamely recommended the request of the
purchasers of the plots to the Government for the grant of relaxations from the provisions of the
rule 22 of the lay-out rules so as to enable the purchaser of the plot to secure building permission
after paying the proportionate betterment charges. The procedure is highly irregular. By resorting
to this kind of attitude the Municipal Corporation will loose its legitimate income by way of
license fee for the lay-out and it would also amount to ratifying the unauthorised lay-out formed
in full contravention of the layout rules which may adversely affect the proposals contained in the
Zonal development plans, Master Plan which have been prepared according to the principles of
planning.
(B)
The casual and callous attitude of this kind on the part of the Municipal
Corporations had given scope for several unscrupulous persons to resort to series of malpractices
and the cities are already studded with several pockets consisting of irregular and sub-standard
developments with no relationship to their immediate environments. Therefore when-ever an
unauthorised layout is detected, immediately the Municipal Corporation should proceed to survey
the area as left behind by the owners of the land responsible for such unauthorised layouts. As per
the provisions of Hyderabad Municipal Corporation Act, the Municipal Commissioner shall also
proceed to take action against those responsible for such unauthorised layouts. If it is not possible
to take any action against the owner of the land (lay-out), the Municipal Commissioner should
proceed to take action on the owners for the time being (i.e., the owners of the plots in such
unauthorised layouts.) The Municipal Commissioner should take all necessary steps to regularize
such unauthorised layouts by working out a suitable layouts with necessary widening of the
streets as left out in the unauthorised layouts, establish necessary road links and also work-out the
estimates for carrying out the road works and the provision of other amenities. Immediately there
after notices shall be issued to the owners of the plots about the approval of the lay-out with
necessary revisions, and call upon them to deposit in the Municipal Corporation their share of the
betterment charges so as to enable the Municipal Commissioner to form the roads as per the
revised layout and provide all other amenities. The charges which shall be collected from the plot
holders shall include.
(i)

the betterment charges along with the charges for the external development;

(ii)

the proportionate cost of open-spaces to be provided in such layout for

community purposes

(iii)

the proportionate charges for the approval of the layout ; and

(iv)

other legitimate charges if any;

c) All these charges collected by the Municipal Corporations shall be deposit in a

separate account and they shall never be allowed to be merged with the general funds. This
amount so collected shall be spent only with in the respective layout areas. The amount collected
toward external development shall be used for forming or widening existing road links to the

layout area and also for necessary replacement or improvement of the electric supply, water and
sewerage mains to the lay-out area.
(d)
If proper response is not forth-coming from the purchaser of the plots in the unauthorised layout, the Commissioner may proceed to form the roads and provide amenities and
recover the cost from the owners of the plots as laid down in the Hyderabad Municipal
Corporation Act, necessary action also shall be taken for the removal of the unauthorised
constructions if any made on this unauthorised plots. The attention of the Municipal
Commissioner is invited to the orders issued already by Govt. Memo no.2552/K1/80-4 M.A.
dated 08-12-1980. As per these instructions, till such time atleast 50% of the plot owners pay the
betterment charges and other charges due the Municipal Commissioner should not grant any
building permission.
III. PROCEDURE TO BE FOLLOWED IN DEALING WITH UN-AUTHORISED LAYOUTS
OUTSIDE THE MUNICIPAL CORPORATIONS LIMITS AND FALLING UNDER THE
JURISDICTION OF URBAN DEVELOPMENT AUTHORITY DEVELOPMENT AREAS:
(A) The areas under all the three Municipal Corporations of the state i.e. Hyderabad
Vijayawada and Visakhapatnam form part of the development areas under the control of
development authorities, which have jurisdiction even over the areas beyond the limits of
municipal corporations. These out laying areas are now under the control of Gram Panchayats,
prior to the constitution of the development authorities the Gram Panchayats, were granting
permissions for the sub-division of lands for building purposes (approval of layouts) under the
rules issued in G.O.Ms.No.330 dt.12.10.73. Section A of these rules deals with the approval to be
accorded for (the layouts) the sub-divisions of the lands for building purposes. The layouts can be
approved by the Gram Panchayats (not by the Sarpanch) only after obtaining the approval of the
Director of Town and Country Planning. It is highly irregular for the Sarpanch to accord approval
for the layouts without the approval of Director of Town and Country Planning and the Gram
Panchayat.
(B) Several instances had come to the notice of the Development Authorities and
Government also wherein the owners of the layouts had produced so called approved layouts
signed by Sarpanch of the Gram Panchayat concerned and some of them is suspected to have been
anti dated with a view to create an impression that layouts had been approved even before the
Urban Development Authorities had come into existence or the provisions of Urban Land Ceiling
and Regulations act, 1976 had come into force. It has also been observed that the Development
Authorities are expressing helplessness in dealing with such layouts when the owners of the
layouts had disappeared leaving behind persons who purchased plots which do not have an access
from the roads formed as per the standards laid down in the rules and without any of the amenities
like drains, water and electric supply etc. In such cases there is no need for the urban
Development Authorities to recognize such unauthorised sales of plots which do not form part of
a layout approved by Director of Town and Country Planning and the Gram Panchayat and the
roads not formed and other amenities provided as per the provisions of the Gram Panchayat rules
now in force.
As per clause (23) of Section 2 of A.P. Gram Panchayat Act, the owner would include the
owner of the time being also (i.e. of owners of the plots). Therefore if it not possible to take
action against the owners of the layout, it shall be possible to take action against the owner of the
plots. As per rule 3 of the Andhra Pradesh Gram Panchayat Building Rules, 1972 the owner of
any layout is not entitled to sell the plots without forming the roads and providing other amenities
as required under the rules including the provisions of 5% of the land covered by the layout as
public open-space. Since this particular obligation has not been fulfilled by the owner of the
layout and the development authorities concerned any proceed further against the purchaser of the
plots under section 42 and 43 of the Andhra Pradesh urban Areas (Development) Act, 1975 and to

proceed to take action on the lines suggested for the action to be taken against the un-authorised
layouts falling within the Municipal Corporation areas.
It is needless to point-out that the areas around the cities of Hyderabad, Vijayawada,
Visakhapatnam, Guntur, Warangal, and Tirupathi are in the rapid process of Urbanization and the
land values in such areas are comparatively high and these areas are likely to be brought under the
jurisdiction of the Municipal Corporations or Municipalities by extending the limits of the
Municipal Corporations or Municipalities or by constituting them into separate Municipalities.
Therefore the levels of infrastructures like roads, open spaces, water supply and drainage facilities
etc., in such areas already urbanized or in the process of rapid Urbanization, should be on par with
the levels of infrastructure that are insisted upon such layout areas located within the Municipal
Corporation or Municipal Limits.
Separate orders will be issued extending the layout rules issued under Municipal
Corporation Acts or Andhra Pradesh Municipalities Act to the parts of Development Areas
Municipal Corporation or outside Municipal limit under urban development authorities and to
make the urban Development Authorities the only authority to deal with all the layout cases, since
the Gram Panchayats has not been in a position to effectively deal with the approval of layouts or
action on unauthorised layout.
The Commissioners of Municipal Corporations and Vice-Chairman of Urban
Development Authorities are requested to take immediate action on all the lay-out cases and subdivision of lands including un-authorised layouts formed and sub-division of lands made basing
on the above said guide-lines.
The Commissioners of Municipal Corporations and Vice-Chairman of Urban
Development Authorities are requested to acknowledge the receipt of the Government orders
issued by next post.
(BY ORDER AND IN THE NAME OF THE GOVERNOR OF ANDHRA PRADESH)
C.ARJUNA RAO,
SECRETARY TO GOVERNMENT
To
The Commissioners,
Municipal Corporation of Hyderabad/Vijayawada, Visakhapatnam
Municipal Corporations.
Copy to the Vice-Chairman, Hyderabad Urban Development Authority,
Hyderabad/Vijayawada/Visakhapatnam Urban Development Authority,
Visakhapatnam/Tirupathi Urban Development Authority Tirupathi/
Kakatiya Urban Development Authority, Warangal.
Copy to Private Secretary to Minister (Municipal Administration) for
Placing before Minister (Municipal Administration)
Copy to stock file/spare
//FORWARDED BY ORDER//
SECTION OFFICER