Telangana Govt Issues New GO on TDR for Lake, Nala & Buffer Zone Lands; Major Relief for Affected Landowners

Hyderabad, January 16, 2026: In a significant policy move balancing environmental protection and landowner compensation, the Telangana Government has issued a new Government Order (G.O.Ms.No.16) amending the Building Rules to provide enhanced Transferable Development Rights (TDR) for lands affected by lakes, rivers, nalas, Full Tank Level (FTL), Maximum Flood Level (MFL), and buffer zones within the Core Urban Region (CURE).

The order, issued by the Metropolitan Area & Urban Development (MA&UD) Department, introduces a differentiated and structured TDR framework, replacing the earlier uniform compensation model.

Why This GO Was Issued

The government cited multiple judicial directions as the basis for this amendment:

• Supreme Court and High Court rulings mandating protection and restoration of lakes, rivers, and nalas.
• National Green Tribunal (NGT) orders (August 13, 2021) directing demarcation of FTL and buffer zones and prohibiting construction in these areas.
• Representations from landowners whose patta lands fall within restricted zones, making development permissions impossible.

To address these concerns while ensuring conservation, the government identified TDR as a fair and sustainable compensation mechanism.

Key Highlights of the New TDR Policy

1. Higher TDR Compensation Based on Land Category

• FTL of lakes & MFL of rivers: 200% TDR of the built-up area surrendered
• Buffer zones of lakes & rivers: 300% TDR
• Lands outside buffer zones but required for public purposes (lake development, conservation works, etc.): 400% TDR, on par with road widening
• Private lands taken for nala widening (not earlier recorded): 400% TDR

2. Setback Relaxation & Additional Floors Allowed

Landowners surrendering land free of cost for water bodies or nala widening can opt for:

• Relaxation in building setbacks, or
• Permission for additional floors on remaining land

Conditions apply:

• Additional built-up area must not exceed eligible TDR
• Mandatory Fire NOC and Airport Authority NOC
• For high-rise buildings, a minimum 7-metre all-round setback is mandatory

3. Applicability Limited to Government-Notified Projects

The revised rules apply only to projects undertaken or notified by:

• Hyderabad Metropolitan Development Authority (HMDA)
• Greater Hyderabad Municipal Corporation (GHMC)
• HYDRA
• Musi River Development Corporation (MRDCL)
• Urban Local Bodies (ULBs)
• Irrigation and Lake Development agencies

Landowners become eligible for TDR only after official government notification.

4. TDR Bank for Title Dispute Cases

In cases where land ownership is disputed or the owner is unavailable, eligible TDR will be:

• Credited into a TDR Bank
• Released once ownership disputes are legally resolved

5. Mandatory TDR Usage in High-Rise Buildings

To improve market acceptance and voluntary participation:

• For buildings above 10 floors, 10% of the built-up area above the 10th floor must mandatorily use TDR

6. Additional Safeguards & Approvals

• Clearance from Irrigation and Revenue departments required for water-body-affected lands
• Government approval mandatory for bulk lands exceeding 1 acre
• Irrigation NOC not required where final FTL notification has already been issued

Official Details

• Issuing Department: Metropolitan Area & Urban Development (MA&UD)
• GO Number: G.O.Ms.No.16
• Date: January 16, 2026
• Signed by: Jayesh Ranjan, Special Chief Secretary to Government

Why This GO Matters

This landmark amendment is expected to:

• Encourage voluntary surrender of encroachments
• Accelerate lake restoration, nala widening, and flood mitigation works
• Ensure fair compensation for landowners affected by environmental regulations
• Resolve long-pending disputes around FTL, MFL, and buffer zones

Urban planners and real estate experts view this GO as a critical reform that balances urban development with ecological conservation, especially for Hyderabad’s vulnerable water bodies.