When conceived, the Hyderabad Metropolitan Development Authority (HMDA) came up with the ambitious aim of ensuring a ‘scientific and regulated development’ of the capital region and surrounding districts. However, seven years down the line, its identity lies in tatters and uncertainty plagues its existence.
The once overflowing treasuries of the urban planning body were pillaged by the government but none came to its rescue when its bank accounts were attached by the Income Tax department and even salaries of staff became a matter of concern. Hit by apathy and faced with mounting debts and steeped in allegations of corruption, the HMDA seems to be losing its relevance.
Big-ticket projectsIn the past, the HMDA had executed some big-ticket projects in the city, including the 11.5 km PVNR Expressway, considered the longest elevated expressway of the country and gave shape to the 158-km long Outer Ring Road (ORR), which is in the final lap of completion apart from flyovers at Gachibowli and Hitec City.
A series of Master Plans for the city and its extended areas were drafted and notified and the body was behind taking up a Comprehensive Transportation Study (CTS) to plan long-term needs of city traffic.
During the real estate boom, the HMDA auctioned slices of its land bank and generated huge revenues but the then State government took away a major share as part of resource mobilisation. A senior official, declining to be identified, pointed out that, “almost Rs.2,700 crore that we generated through auctions was taken away by the government.”
30 bank accounts frozenTopping it, the Income Tax department came demanding Rs.500 crore as tax for this amount. And despite contending that the money was transferred to the government treasury and hence does not attract the tax, the HMDA in 2013 found itself penniless after 30 of its bank accounts were frozen by the IT department.
Further, adding to its woes, officials estimate that the accrued debt from various financial institutions stood at more than Rs.1,000 crore and the authority was shelling out monthly interest to the tune of Rs.12 crore and more.
There are several projects such as Education Hub, Hyderabad Habitat Centre and Science City, all lined up for execution but faced with scarcity of funds, all remain on hold. “Even concepts of Land Pooling and Transit Oriented Development that we sought to pioneer here continue to hang fire,” concedes another official, also pleading anonymity.
Pathetic stateThe current financial status of the body is such that the HMDA recently decided to hand over its 39 parks and green areas in the city to the Greater Hyderabad Municipal Corporation (GHMC), unable to manage maintenance cost of Rs.4.50 crore. Left with meagre budgetary support, the HMDA’s aspirations to shore up its revenues by auctioning its lands too have been put on hold given the real estate slowdown.
However, corruption and fraud charges keep haunting the HMDA, particularly in issues pertaining to building permissions and layout and building regularisation schemes. Following such allegations, an enquiry was to be held at Shankarpally Zonal office but more than 490 files were destroyed in fire a day before. The HMDA promptly suspended two officials then and constituted another enquiry into the episode.
