Revenue Dispute Grows Between GHMC and HMDA After Expansion of Limits

Hyderabad | February 9, 2026 | DeccanLive.com

The Telangana government’s decision to expand the limits of GHMC (Greater Hyderabad Municipal Corporation) and HMDA (Hyderabad Metropolitan Development Authority) has triggered a dispute between the two departments over revenue sharing.

Earlier, several municipalities on the city outskirts were merged into GHMC. Later, the government expanded the limits further up to the Outer Ring Road. This expansion has now led to confusion and disagreement over which department should receive revenue, especially from building construction approvals.

With GHMC limits now extending up to the old HMDA growth corridor, the real estate and construction sector, which generates significant revenue, has become the main point of contention. Both GHMC and HMDA rely heavily on income from building permissions to fund new development projects.

At present, GHMC officials are raising concerns that permissions for buildings taller than 15 metres are being handled by HMDA, even within GHMC areas. This means that most of the revenue from high-rise buildings is going to HMDA, leaving GHMC with fewer income sources.

High-rise buildings at the centre of the issue

Under the existing rules, GHMC is allowed to approve only low-rise buildings of up to 7 to 10 floors. Permissions for buildings taller than that are granted by HMDA. However, areas within the Outer Ring Road have become prime zones for high-rise projects, making them highly valuable in terms of revenue.

This situation has intensified the dispute, as GHMC believes it is losing major revenue despite having expanded jurisdiction.

Calls for revenue-sharing

There are now discussions about sharing the revenue generated from high-rise construction projects. GHMC officials argue that such income could help reduce the corporation’s growing debt burden.

However, HMDA officials feel that sharing revenue may affect their ability to fund urban development projects within their jurisdiction. Experts believe that the problem has arisen due to the lack of proper planning and scientific assessment during the merger and expansion of civic limits.

Officials warn that unless clear guidelines are issued, more disputes may arise in the future, especially regarding building permissions and revenue distribution.