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 of the sub-division of lands
made Issued.
-x-x-x-x-x-x-x-x-x-x-x-x-x-x-x-x-x-x-x-x-x-x-x-x-x-x-x-x-x-x-x-x-x-x-x-x-x-x-x-x-xHOUSING MUNICIPAL AND URBAN DEVELOPMENT (11) 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 02-12-1965
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
developers 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 failing 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 heed 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 1for the grant of building
permissions and in many cases the plots carved out are sub-standard and are in-violation of layout
ruled 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 layouts areas and
under taken 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.
.
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:
As soon as the application for the approval of layout for the sub-division of the land for building
purpose is received while scrutinising the with reference to the rules 3 to 11 of the layout rules the
following aspects also should be considered :Whether the land use proposed in the layout is as per the master plan or zonal Development plan.
Whether the road pattern as proposed by the Applicant is as per the Master Plan or zonal
Development plan and layout rules.
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 there under 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.
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 shall 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
(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 charged 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 under take 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 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.
(e)

The cost of development of land shall include

the cost of formation of roads with black topping, construction of culverts, bridges, 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.
the betterment charges along with the charges for the external development;
the proportionate cost of open-spaces to be provided in such layout for community purposes
the proportionate charges for the approval of the layout ; and
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 un-authorised
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 this 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 Municipal Corporation 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 roads leading to the lay-out colony, the replacement of the water and electric mains
leading to the 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 metre.
PROCEDURE TO BE FOLLOWED IN DEALING WITH THE UN AUTHORISED LAY-OUTS
WITHIN MUNICIPAL CORPORATION LIMITS :
Several instances have come to the notice of the Government where in people resorted to
unauthorised sub-divisions o f the lands with sub-standard plots and roads and selling the 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 un-authorised 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 layout would affect the existing
road pattern, nature of developments and the existing services in the surroundings areas. In most
of such cases, the municipal corporation without any serious action against the owner who is
responsible for such unauthorised layout timely recommended the request of the purchasers of the
plots to the government for the grant of relaxation from the provisions of the rule 22 of the layout
rules so as to enable the purchaser of the plot to secure building permission after paying the
proportionate betterment charges. This procedure is highly irregular. By resorting to this kind of
attitude the municipal corporation will loose its legitimate income by way of licence fee for the
layout and it would also amount to ratifying the unauthorised layout 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.
The casual and callous attitude of this land 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 relations 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 .

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:
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.
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 recognise 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 and Guntur and Warangal, and Tirupathi are in the rapid process of Urbanisation
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 urbanised or in the process of rapid Urbanisation, 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 sub-division 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