Farmland Conversions May Slow as Telangana 22-A List Grows

Telangana 22-A List checks are likely to become a non-negotiable step in farmland-to-non-agricultural conversion deals, especially around Hyderabad’s growth corridors. As per latest IGRS data available with Verified.RealEstate, the prohibited properties database under Section 22-A contains 3,076,153 records. That is a large enough base to make buyers, plotted layout promoters and developers pause before paying token advances on agricultural land.

The immediate market impact may not be a crash or panic. In our experience, it will be more practical: longer due diligence, more questions at the SRO, tighter sale agreement clauses, and fewer casual cash advances based only on a pahani copy or a broker’s assurance.

Our view: farmland conversion deals in places like Shankarpally, Moinabad, Maheshwaram, Shadnagar, Chevella and Ghatkesar will still happen. But clean title and 22-A clearance will now command a stronger premium.

Telangana 22-A List: why farmland conversion buyers are getting cautious

Section 22-A restrictions can block registration of certain properties that fall under prohibited categories. For a buyer planning to convert agricultural land into non-agricultural use, that is not a small technical issue. If the survey number or part of the land parcel is flagged, the transaction may not move at the registration stage, or it may require clarification from revenue authorities before any clean sale deed can happen.

This is where many farmland deals around Hyderabad become sensitive. Agricultural parcels in mandals such as Shankarpally, Chevella, Moinabad, Kandukur, Maheshwaram, Ibrahimpatnam, Yacharam, Ghatkesar, Medchal and Shamirpet often pass through multiple hands before a final buyer enters. Some buyers look at farmhouse use. Some promoters plan plotted ventures. Some developers aggregate land slowly, bit by bit. In all these cases, a 22-A issue can disturb the entire chain.

Earlier, many buyers would first pay an advance, then start checking the link documents, pahani, Dharani entries, EC and mutation trail. That order is changing. We’ve seen more serious buyers now asking for survey number-level verification before they sign even a basic memorandum or bayana agreement.

How the Telangana 22-A List may affect farmland-to-NA conversion deals

Farmland-to-non-agricultural conversion is already a layered process. The buyer has to understand the land classification, ownership trail, revenue records, access road, zoning position, local planning restrictions, and SRO registration status. If the land is proposed for a layout, then RERA, HMDA or DTCP compliance may also enter the picture depending on the project structure and location.

The 22-A list adds one more gate. Not a small gate. When prohibited property records are this large, buyers cannot treat the check as a formality. A property may look attractive because it is close to ORR, Regional Ring Road discussions, an upcoming road, an industrial cluster, or a fast-growing residential pocket. But if the survey number is hit by a restriction, the commercial story changes immediately.

For example, land near Mokila, Kollur and Shankarpally may attract villa developers and plotted layout interest. Maheshwaram, Tukkuguda and Kandukur see interest because of airport-side growth. Adibatla and Ibrahimpatnam attract buyers looking at the IT and aerospace-side belt. Shadnagar and Kothur remain popular with investors because of highway connectivity. In each of these micro-markets, buyers should verify the exact survey number, not only the village name or mandal reputation.

What buyers should verify before paying any advance

My advice is simple: do not pay a serious advance only on verbal confidence. Ask for documents first. Then verify. Then negotiate.

• Check 22-A status: Use the exact survey number, village and mandal. Start with the Section 22-A Prohibited Property Check.
• Confirm survey details: If the seller gives old survey references, cross-check them with the Survey Number Finder.
• Read the EC: Do not depend only on the latest sale deed. Use Encumbrance Certificate Search and study the ownership flow.
• Check government value: Ready reckoner value matters for stamp duty and deal discussions. Use the Market Value / Guideline Value Search.
• Know the SRO: Many boundary villages confuse buyers. Confirm the correct office through Find Your SRO Office.
• Do full title screening: For higher-value land, run a wider check through the Property Verification Tool.

For conversion-focused buyers, land use also matters. A land parcel may be free from 22-A restriction but still unsuitable for the buyer’s intended project because of zoning, access road width, water body buffers, road widening impact or layout approval constraints. That is why a pure revenue-record check is not enough.

Developers may rewrite agreement clauses

Developers and land aggregators are likely to become stricter in sale agreements. We expect more agreements to include clauses that make the advance refundable if the land is found under 22-A prohibition, litigation, government claim, assigned land issue, endowment claim, wakf claim, ceiling issue or other title defect.

In a clean transaction, the seller should not object to this. If the land is clean, verification protects both sides. If the seller resists every document request, that itself is a signal.

For plotted layout promoters, the risk is sharper. They often commit money for land aggregation, fencing, planning, marketing and approvals. If one key parcel in a larger block is later found to have a prohibited status problem, the entire layout geometry can get disturbed. Access road alignment, open space planning, plot count, mortgage area and approval drawings may need revision.

Impact on Hyderabad peripheral markets

The strongest impact will be in the belt where agricultural land is being actively discussed for future residential, warehousing, farmhouse, villa and plotted development. This includes parts of Rangareddy, Medchal-Malkajgiri, Sangareddy and Yadadri-Bhuvanagiri districts touching Hyderabad’s expansion pattern.

In Shankarpally and Moinabad, buyers already ask detailed questions because land parcels often have family partitions, old GPAs, unregistered arrangements or access issues. In Maheshwaram and Kandukur, airport-side demand brings aggressive enquiries, but conversion and zoning checks are critical. In Ghatkesar, Bibinagar and Yadagirigutta-side belts, investors must be careful with survey number matching and village-level revenue records. In Patancheru, Isnapur and neighbouring Sangareddy pockets, industrial and residential expectations can push buyers to rush. That rush is exactly where 22-A verification gets missed.

Will this slow the market? Yes, for unclear properties. Clean land will still move. In fact, clean land may become easier to sell because buyers can compare it against parcels where the seller is unable to give proper papers. The market usually does not stop; it starts separating good files from risky files.

Telangana 22-A List due diligence checklist for farmland conversion

Buyers should also calculate transaction costs early. The Stamp Duty Calculator can help estimate registration-related outgo based on the applicable value. If the buyer is planning a plotted project or villa project, tools like the Land Use Zone Finder, Road Width Check and FSI/FAR Calculator can help frame the first level of feasibility.

Our market reading

The growth of the Telangana 22-A List does not mean every farmland deal is risky. It means casual buying is risky. There is a difference.

Agricultural land around Hyderabad still has genuine demand. Families want weekend land. Developers want future land banks. Investors want early entry into expanding corridors. But the market is maturing. The old style of paying token money after seeing a boundary stone and a photocopy of pahani is becoming dangerous.

In our experience, the safest approach is to treat 22-A verification as the first filter, not the last step. If the property clears that, then move to title, EC, Dharani, family tree, possession, access, zoning and conversion feasibility. If it does not clear, do not get emotionally attached to the location. There will always be another parcel. There may not always be an easy way to recover an advance.