The Telangana High Court has intervened in a significant legal challenge against a major state government policy concerning Hyderabad's industrial landscape. On Friday, a division bench instructed both the state and central governments to formally respond to public interest litigations (PILs) that question the legality of the Hyderabad Industrial Lands Transformation Policy (HILTP).
Court Directs Government Counters, Sets Next Hearing
The bench, comprising Justices P Sam Koshy and Suddala Chalapathi Rao, issued the directive after posing several queries regarding the policy. The court has given the involved parties time to file their detailed counters and has scheduled the next hearing for December 29. The HILTP is a flagship initiative aiming to repurpose over 9,000 acres of high-value industrial land situated within the Outer Ring Road (ORR) area for multipurpose use, including residential and commercial development.
Petitioners Raise Environmental and Procedural Concerns
One of the lead petitioners, retired professor K Purushotham Reddy, has urged the court to quash Government Order (GO) 27, which was issued on November 22, 2025, to enact the HILTP. The plea calls for a comprehensive environmental impact assessment (EIA) study before any large-scale development proceeds in these industrial zones. The petitioner also highlights the need for an assessment of potential health hazards if residential units are constructed in areas currently designated for industry.
Representing the petitioners, advocates Vivek Reddy and K Pratik Reddy argued that the state government bypassed mandatory procedures under the Hyderabad Metropolitan Development Authority (HMDA) Act for changing land use. They contended the policy was introduced selectively. "As per the GO, lands belonging to those who pay amounts can be converted... The most obnoxious part is having industrial activity contiguous to residential activity," the counsels argued.
They cited the example of the Pashamylaram industrial park, alleging groundwater pollution and damage to natural resources, yet it is still slated for conversion. The lawyers stated, "We understand the state is going through financial stress, but that does not mean dispensing with all statutory mandates." Another petitioner, KA Paul, has sought a court-monitored CBI and ED investigation into the proposed land conversion and transfer.
State's Defense and Assurance to the Court
Appearing for the state, Advocate General A Sudarshan Reddy countered that the concerns raised in the PILs are presumptuous. He assured the court that any conversion and transfer of land would be carried out in full compliance with the HMDA Act. The AG gave a crucial assurance that the government would not permit the conversion of industrial land for other purposes until all polluting industries in areas like Balanagar, Khatedan, and Kukatpally are relocated outside the Greater Hyderabad Municipal Corporation (GHMC) limits, adhering to 2013 orders.
"We are not setting up industrial zones, rather removing and shifting them out, so that pollution is cut down and Hyderabad's lost greenery is also restored," the Advocate General submitted, framing the policy as an environmental and urban rejuvenation measure.
The case pits arguments of procedural compliance and environmental caution against the state's vision for urban transformation and pollution reduction. The court's decision on December 29, after reviewing the government counters, will be a critical next step in determining the fate of this ambitious policy.
