Hyderabad IT Park Deal May Test 22-A Warranty Clauses

Hyderabad IT Park Deal May Test 22-A Warranty Clauses because large commercial buyers are becoming less willing to close transactions on basic title assurances alone. With 3,076,153 prohibited property entries recorded under Section 22-A in Telangana records, deal teams looking at IT parks, office campuses and land-heavy commercial assets in Hyderabad are expected to ask sharper questions before signing the sale deed.

The immediate issue is simple: if even one survey number in a commercial transaction has a 22-A shadow, the SRO may refuse registration. For a buyer acquiring an operational IT park in Madhapur, Gachibowli, Nanakramguda, Financial District, Kokapet or Raidurg, that is not a small clerical risk. It can affect funding, handover, lease assignment, security creation and exit value.

Hyderabad IT Park Deal May Test 22-A Warranty Clauses Before Closing

In our experience, Hyderabad commercial deals used to focus heavily on encumbrance, lease rentals, building approvals and tax exposure. Those are still critical. But Section 22-A has now moved from a back-office legal checklist item to a boardroom negotiation point.

Section 22-A entries generally relate to properties that are barred from registration by law or government notification. These may include government land, assigned land, endowment land, wakf-related entries, ceiling surplus land, court-attached properties or other notified categories. The wording and reason matter. The survey number matters even more.

For a major IT park asset, buyers are likely to demand a clear seller warranty that no part of the property is covered by a prohibited property entry. Not just the building footprint. The full land parcel, access road, common area, parking parcel, utility land and any expansion land must be checked.

This is where many older Hyderabad transactions become tricky. A campus may be marketed by its project name, but the legal identity still rests on village, mandal, survey number, sub-division, extent and SRO jurisdiction. A polished data room cannot replace a clean Dharani and registration record trail.

Why 3,076,153 Section 22-A Entries Matter For Hyderabad IT Park Deal May Test 22-A Warranty Clauses

As per the latest database available to us, Telangana has 3,076,153 prohibited property entries. That number alone explains why large buyers are no longer treating 22-A as a routine search.

Hyderabad’s commercial market has many land histories. Around HITEC City and Madhapur, we have seen older agricultural roots, layout conversions, society allotments and redevelopment layers. In Gachibowli and Nanakramguda, institutional allotments and large land parcels are common. In Kokapet and Narsingi, the conversation often includes auction lands, HMDA layouts, approach roads and zoning. In Uppal, Pocharam and Ghatkesar side, IT and warehousing parcels may sit beside older village records.

None of this means a property is defective. But it means the warranty language must be precise. A generic line saying “the seller has good title” may not be enough for a buyer putting serious money into a commercial campus.

My view is that the next phase of Hyderabad commercial due diligence will not stop at EC and link documents. Buyers will insist on specific 22-A representations, indemnities and closing conditions.

What A Strong 22-A Warranty Should Cover

A serious buyer should not accept a loose warranty. The clause should be tied to the exact survey numbers, village, mandal and SRO. It should also cover past and present entries, because some issues surface when old records are digitised or reconciled.

• Survey number level confirmation: The warranty should list every survey number and sub-division forming part of the IT park land.
• No prohibited entry: Seller should confirm that no part of the property is listed under Section 22-A as per government records.
• No pending proposal: If the seller is aware of any proposed inclusion, objection or departmental claim, it must be disclosed.
• Clean registration ability: The sale deed, lease assignment, mortgage or security document should be capable of registration at the relevant SRO.
• Indemnity: If a hidden 22-A issue blocks registration or affects title later, the seller should compensate the buyer.
• Condition precedent: The buyer should have the right not to close unless 22-A checks are clean till the closing date.

For anyone doing first-level checks, start with Section 22-A Prohibited Property Check, then cross-check the survey details through Survey Number Finder. For registration jurisdiction, use Find Your SRO Office.

Due Diligence Beyond The Warranty Clause

Warranty is only the contract language. The real protection comes from verification. A buyer of an IT park or large office block should ask for title papers, link documents, pahanis, mutation records, Dharani extracts where applicable, layout permissions, building permissions, occupancy certificate, lease documents and tax records.

The Encumbrance Certificate is still important, but it is not a full title certificate. It shows registered transactions for the period searched. It will not automatically solve prohibited property risk, possession disputes or boundary mismatch. Use Encumbrance Certificate Search and, where the EC is lengthy, review it with EC Analyzer.

For commercial properties, valuation also needs a grounded approach. SRO market value, also called ready reckoner or guideline value in common usage, is not the same as negotiated market price. But stamp duty and registration calculations are tied to official values. Buyers can check the official benchmark using Market Value / Guideline Value Search and estimate transaction costs through Stamp Duty Calculator.

Hyderabad IT Park Deal May Test 22-A Warranty Clauses In These Localities

The pressure will be higher in locations where commercial land parcels are large, old and layered. Madhapur, Kondapur, Gachibowli, Raidurg, Nanakramguda, Manikonda, Kokapet, Narsingi, Puppalaguda, Tellapur, Kollur, Uppal, Pocharam and Shamshabad are all markets where institutional buyers usually ask for deep title work.

Mandal-level checks matter. A parcel described casually as “Financial District” may actually fall under a specific village and mandal record. A building marketed as part of a tech corridor may have multiple survey numbers in its parent title. We have seen buyers lose time because the marketing name, municipal address and revenue description did not match neatly.

For IT park transactions, the buyer should also verify land use, road width and development potential. These issues are separate from 22-A, but they affect asset value. Tools like Land Use Zone Finder, Road Width Check and FSI/FAR Calculator can help teams frame the right questions before legal counsel takes over.

How Sellers Can Prepare Before A Buyer Raises 22-A Objections

Sellers should not wait for the buyer’s lawyer to discover gaps. If a commercial asset is being prepared for sale, the data room should include a survey-wise title note, ECs, approved plans, permissions, tax receipts, lease schedules and a clear 22-A search record.

If any entry appears by mistake, the seller must begin rectification early. These matters do not always move quickly. Depending on the nature of the entry, the process may involve revenue authorities, registration department, endowment or wakf authorities, court orders or government clarification. A buyer will rarely accept “we will clear it later” in a high-value closing.

We have seen this change in buyer behaviour after banks, funds and REIT-style investors became more disciplined about title risk. For them, registration certainty is not a formality. It is a condition for drawdown, security creation and future exit.

What This Means For Hyderabad Commercial Real Estate

The Hyderabad office market has matured. Buyers are no longer looking only at rent roll and location. They are asking whether the asset can survive legal, revenue and registration scrutiny. That is healthy for the market.

Strong 22-A warranty clauses may slow down some deals at the documentation stage, but they will also reduce post-closing disputes. Sellers with clean records will command better trust. Buyers will price risk more carefully. Lawyers will draft tighter sale agreements. SRO-level verification will become standard, not optional.

The message is clear: in Telangana, a commercial property deal is not fully ready until the survey numbers are clean on record. With 3,076,153 prohibited property entries in the system, that check deserves serious attention.