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Telangana Government Forms New Committee to Resolve Long-Standing Dispute with Emaar Properties

The Telangana Chief Minister has ordered the formation of a new legal committee to resolve the two-decade-long dispute with Dubai-based Emaar Properties. This initiative aims to address legal complexities and facilitate a resolution that allows stalled real estate projects in Hyderabad to progress. This newly formed committee will function in addition to the five-member panel constituted by the previous Bharat Rashtra Samithi (BRS) government in 2015, which was led by the Chief Secretary. Background of the Emaar-APIIC Dispute In 2001, Emaar Properties entered into an agreement with the erstwhile Andhra Pradesh government to invest in the development of a convention center, hotel, golf course, and luxury villas in Hyderabad. Key Stakeholders in the Agreement Andhra Pradesh Industrial Infrastructure Corporation Ltd (APIIC) held a 26 percent stake in the project. Emaar Properties owned the remaining shares. In 2003, the Telugu Desam government transferred 535 acres to Emaar to develop a luxury township. However, in 2005, APIIC s stake was reduced from 26 percent to 6 percent, leading to allegations of irregularities. Investigations and Legal Roadblocks The dispute led to probes by the Central Bureau of Investigation (CBI) and the Enforcement Directorate (ED), stalling the entire project. In 2015, the BRS government set up a committee to investigate the matter, with inputs from the Ministry of External Affairs and the Solicitor General of India. However, legal proceedings are still ongoing. Current Developments: Formation of a New Legal Committee Following a delegation meeting with CM A. Revanath Reddy on February 27, 2025, the Telangana government has decided to set up a panel of legal experts to resolve the issue. The delegation included: Mohammed Alabar, Founder and Managing Director, Emaar Dr. Ahmed Al Banna, Former UAE Ambassador to India Amit Jain, CEO, Emaar Group Mustafa Akram, Emaar s Head of International Affairs The UAE government has also approved Emaar s proposal to form a legal agency that will work with the Telangana government to assist in resolving the matter. Impact on Real Estate and Buyers The state government is now attempting to reclaim 200 acres of unused land from Emaar Properties. Additionally, the stalled project has left apartments on 14 acres incomplete, leading to estimated losses of Rs 300 crore for buyers. Such long-standing disputes can: Disrupt large-scale real estate projects Affect investor confidence Delay housing and infrastructure development By resolving this legal battle, the government aims to: Restore buyers trust Facilitate project completion Ensure smooth real estate development in Hyderabad