Telangana HC Refuses Interim Stay on HILT Policy

The Telangana High Court has declined to grant an interim order suspending the operation of the State Government's flagship Hyderabad Industrial Lands Transformation (HILT) Policy. The policy, and specifically GO Ms No. 27 issued on November 22, 2025, which formalizes its implementation, had been challenged by several individuals and social organizations through Public Interest Litigations (PILs).

The Division Bench, after hearing combined arguments from the petitioners and the Advocate General (AG) representing the State, ruled that there was no immediate justification for issuing a stay on the policy's implementation. The Court instead directed the government to file comprehensive counter-affidavits detailing the reasons, factual background, policy objectives, and the precise procedure of implementation. The matter has been adjourned for further hearing to December 29th, 2025.

The Court underscored the need for a thorough examination of the government's justification, the policy's potential impact, and the broader public interest before any decisive action could be taken. It stated that subsequent decisions would be based on the complete records and explanations provided by the respondents.

Arguments Against GO 27

The PILs, filed by petitioners including Retired Professor K. Purushotham Reddy and Praja Shanti Party President K.A. Paul, strongly contested the legality and environmental implications of the new GO.

The petitioners argued in their pleas that GO 27 constitutes a legal violation because it illegally permits the conversion of industrial lands for residential, commercial, or mixed uses without mandatory scrutiny and in contravention of existing statutes, including the HMDA Act. They further contended that these land use changes amount to a Master Plan breach as they violate the 2013 Master Plan, which explicitly restricts activities in designated industrial zones solely to industrial purposes. Additionally, the petitions highlighted grave environmental concerns, stating that converting these zones for residential use, particularly when adjacent to existing industrial units, could lead to severe environmental imbalances, public health issues, and a breakdown of urban planning regulations.

Key Changes Under the HILT Policy

The HILT Policy is designed to radically alter the city's land-use map by repurposing obsolete industrial areas into vibrant urban spaces. This critical policy grants permission for the conversion of approximately 9,292 acres of industrial land into multi-purpose, multi-use zones. This significant shift allows land previously designated only for industries to be utilized for a variety of purposes, including Residential complexes, Commercial establishments, Institutional facilities (Schools, Hospitals), IT/ITES, offices, and leisure/recreation centers. To facilitate this change, the government mandates that interested landowners must apply online through the TG-iPASS portal. The Telangana Industrial Infrastructure Corporation (TSIIC) is tasked with reviewing these applications and granting a decision in a time-bound manner, following which official records and the zoning laws under the Master Plan would be subsequently modified to facilitate the sale or development of the converted land.

Government's Assurances to the Bench

Appearing for the State, the Advocate General (AG) countered the petitioners' claims by stating that the policy's core aim is to relocate polluting industries from within the Greater Hyderabad Municipal Corporation (GHMC) limits to the city's outskirts, thereby cutting down on urban pollution.

The AG assured the court that the government is not diluting the provisions of GO 20 of 2013 and emphasized that the land conversion would only be permitted after the polluting industrial units are completely shifted out. The AG’s assurance that public objections will be called for before any final Master Plan amendments are made was duly noted by the Court.

The Court's decision to refuse the interim stay means the government can continue to process applications under the HILT Policy, but the final determination of the policy's fate rests on the detailed justification it must provide by the next hearing date.