CHAPTER VI

LAND REVENUE

6.1 Tax Administration

The Chief Commissioner of Land Administration (CCLA) is responsible for

administration of Revenue Board’s Standing Orders (BSO), ‘The Telangana
Water Tax Act, 1988’ and ‘The Telangana Irrigation, Utilisation and
Command Area Development Act, 1984’135, ‘Telangana Agricultural Land
(Conversion for Non-agricultural Purposes) Act, 2006’136, and Rules and
Orders issued thereunder. There are 10 districts in Telangana and each district
is headed by a District Collector who is responsible for the administration of
the respective district. Each district is divided into revenue divisions and
further into Mandals137, which are under administrative charge of Revenue
Divisional Officers (RDOs) and Tahsildars, respectively. Each village in every
Mandal is administered by a Village Revenue Officer (VRO) under the
supervision of the Tahsildar. VROs prepare tax demands under all the Acts
mentioned above for each Mandal from the village accounts and get it
approved by the Jamabandi officers138 concerned. VROs / Revenue
Inspectors are entrusted with work of collection of revenue / taxes such as
water tax, conversion tax for agricultural lands etc. At Government level,
Principal Secretary (Revenue) is in charge of the administration of Revenue
Department.

6.2 Internal Audit

The Department did not have an Internal Audit Wing that would plan and
conduct audit in accordance with a scheduled audit plan.

135
Government of Telangana through G.O.Ms.No.45, Law (F) Department, dated 1 June
2016 adapted the said Acts of combined State of Andhra Pradesh.
136
Government of Telangana through G.O.Ms.No.4, Revenue (Land Matters) Department,
dated 5 January 2016, adapted the Andhra Pradesh Agricultural Land (Conversion for
Non-agricultural Purposes) Act, 2006.
137
Mandals are the jurisdictional area of each Tahsildar.
138
Jamabandi officer is the District Collector or any other officer nominated by him not
below the rank of Revenue Divisional Officer.
Audit Report (Revenue Sector) for the year ended 31 March 2016

6.3 Results of Audit

Test check of records of 31 Land Revenue Offices conducted during the year
2015-16 showed under-assessment and other irregularities involving
` 19.52 crore in 22 cases, which broadly fell under the following categories:

Table 6.1: Results of Audit

(` in crore)
Sl. No. of
Category Amount
No. cases
Revenue Receipts
1. Non-finalisation of alienation proposals 8 19.21
2. Non-levy or short levy of conversion tax 4 0.04
3. Non-collection of lease amount 1 0.05
Total 13 19.30
Revenue Expenditure
1. Irregular refund of stamp duty and other irregularities 9 0.22
Total 9 0.22
Grand Total 22 19.52

During the year 2015-16, the Department accepted irregularity amounting to

` 5.25 lakh in a case pointed out during the year 2015-16.

A few illustrative cases of non-realisation of cost of land and non-levy or short

levy of conversion tax etc. involving ` 8.13 crore, are discussed in the
succeeding paragraphs.

6.4 Maintenance of Land Records

6.4.1 Introduction

Entry 18 under List II - State List of the Seventh Schedule to the Constitution,
inter alia, empowers the State Government to legislate on land, that is to say,
rights in or over land, land tenures, collection of rents, transfer and alteration
of agricultural land, land improvement, etc. Maintenance of land records,
survey for revenue purposes and records of rights fall within the scope of
Entry 45 under the said State List of the Seventh Schedule to the Constitution.

As per Standing Order139 (BSO) 34-A of Telangana Board of Revenue, it is

necessary to maintain and update the land records on the basis of day-to-day
changes, such as, sale, alienation, change of classification etc., in order to
protect Government lands from encroachment, settle boundary disputes,
correctly assess taxes and enable ryots140 to establish their right over the land
in court of law, etc.

139
BSOs are the standing orders concerning revenue issued by the Telangana Board of
Revenue during its existence. Later, it was replaced by the Revenue Commissioners under
the Telangana Board of Revenue (Replacement by Commissioners) Act 1977.
140
Ryots mean farmers.

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6.4.2 Scope and Objectives

Audit was conducted from November 2015 to June 2016 covering the period
of five fasli141 years from 1420 to 1424 (1 July 2010 to 30 June 2015). Out of
ten districts in the State, test check of records was conducted in 26 mandal
offices from eight districts, office of Deputy Director, Hyderabad, Survey and
Land Records (one) and six offices of Assistant Directors142, Survey and Land
Records.

Audit was conducted to ascertain the status of basic land records and
maintenance of other land records at village level and mandal level, efficiency
and effectiveness in maintenance of land records, completion of jamabandi143
within the stipulated time frame for proper maintenance and updation of land
records.

The basic land records to be maintained are:

 The Sethwar (also known as “A” Register) is the basic land record
which contains details of survey numbers of the revenue village, total
area, ownership, nature of land (Inam144, Government / Poramboke145),
type of soil, source of irrigation, etc.
 The Tippan (Field measurement book) is the pictorial representation of
survey fields / sub-divisions recorded in sethwar. It contains the details
of the total extent of land in survey number, location of the land and its
directions and boundaries.
 The Village Map (village plan) acts as an index to tippan and enables
an inspecting officer to identify any field on the ground and is useful
during investigation of disputed boundaries, detection of
encroachments etc.

Deputy Director / Assistant Director, Survey and Land Records (DD/ AD,
S and LR) is responsible for preparation and maintenance of sethwars, tippans
and village maps of all the villages in a district. Tahsildar is responsible for
overall maintenance of land records. Village Revenue Officer (VRO) is
responsible for preparation and maintenance of village accounts.

At mandal level, Record of Rights146 in Form I B (ROR I B), Government

Land Register (Village Account 1), Register of Changes (Village Account 2),
Pahani147 (Village Account 3), Register of Assignments, Register of Transfer
of Land, Register of Leased out Lands and Bought-in-land Register are

141
Fasli year means period of 12 months from 01 July to 30 June. By adding 590 to fasli year
one can get the corresponding calendar year.
142
Adilabad, Khammam, Mahabubnagar, Nalgonda, Nizamabad and Ranga Reddy.
143
Jamabandi means finalisation of Village Accounts.
144
Inam lands are lands gifted by rulers in recognition of services.
145
Lands reserved for State or communal purposes such as cart tracks, river and stream,
burning and burial grounds.
146
Record of Rights is the certificate issued to a person declaring the occupant as the owner
of the property.
147
Pahani is a very important record which contains details of land such as owner's details,
extent, assessment, water rate, soil type, nature of possession of the land, liabilities,
tenancy and crops grown etc.

69
Audit Report (Revenue Sector) for the year ended 31 March 2016

important land records. Audit was confined to check of maintenance of land

records.

Audit Findings
Audit observed the following deficiencies:

6.4.3 Non-conduct of re-survey despite expiry of first settlement

As per Para 1 of Chapter-XVI of Hyderabad Survey and Settlement Manual,

first settlement is guaranteed only for a period of 30 years. For resettlement,
re-survey has to be conducted. Survey / re-survey is an important work to run
an efficient revenue administration and for issue of conclusive title for
meaningful enjoyment of rights to a landed property. As per Para 3 of
Introduction to the Andhra Pradesh Survey Manual of Departmental Rules
(Vol. I), re-survey is required to be conducted when the changes in occupation
and in the boundaries of fields are too numerous to be dealt with by the
Revenue staff, or when the previous survey is considered defective.

Based on the information furnished by four AD offices148, Audit observed that

no re-survey was conducted in these districts for 20 to 68 years. Information in
respect of the remaining three AD offices149 was awaited.

While agreeing with the audit observation, ADs replied that Government had
not taken any decision on re-survey.

6.4.4 Failure to conduct revision survey within prescribed time

As per Para 1 of Chapter-XVI of Hyderabad Survey and Settlement Manual,

revision survey has to be conducted every 15 years. During revision survey,
replacement of missing survey marks and measurement of changes in
occupation, or in the physical features of the State have to be carried out.
However, no revision survey has been conducted in the State in the last 69
years.

6.4.5 Status of availability of initial Land Records

As per Sections 86(1) and 88 of the Land Revenue Act, 1317 Fasli
(Hyderabad Code Vol. I), each of the villages in the district must have one
sethwar, one village map and each survey number of the village must have a
tippan.

Office of the DD, S and LR, Hyderabad and six offices 150 of AD, S and LR
have 7,428 villages and 22,87,193 survey numbers under their jurisdiction.
Hence, these offices are required to maintain 7,428 sethwars, 7,586151 village
maps and 22,87,193 tippans. As Hyderabad district is totally urbanised,
Record of Measurement (ROM) and Town Survey Land Register (TSLR) are

148
Adilabad, Nalgonda, Nizamabad and Ranga Reddy.
149
Hyderabad, Khammam and Mahabubnagar.
150
Adilabad, Khammam, Mahabubnagar, Nalgonda, Nizamabad and Ranga Reddy.
151
Variation is on account of dry and wet maps being maintained separately in Nalgonda
district.

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maintained. TSLR is also known as Final Check Operation Land Register

(FCOLR).

Audit observed that only 4,712 sethwars, 7,392 village maps, 17,37,769
tippans were available. Rest of the records were missing.

Moreover, in Hyderabad district, out of 282 ROMs and 282 FCOLRs, 275
ROMs and 276 FCOLRs were available and the remaining were missing.

While agreeing to the audit observation, DD, Hyderabad and also other ADs
replied that efforts would be made to prepare records on completion of
re-survey.

6.4.6 Unfruitful expenditure on building up of Land Records under Bhu

Bharati152 Project

Considering the improper maintenance of land records in the State,

Government had taken an initiative to build land records by conducting
re-survey under the project called “Bhu Bharati”. The Project was taken up on
a pilot basis in Nizamabad district in the year 2005 with a time frame to
complete the project within two years.

The project was contemplated with the following objectives:

 Creation of Register of Titles to grant conclusive titles;

 Integration of process of Survey, Revenue, Registration and Local
bodies;
 Updation of Land Records;
 Title transfer (mutation) of property through e-conveyance; and
 Creation and enforcement of dedicated service centres to cater to the
needs of citizens.

As a part of implementation, National Institute for Smart Government (NISG)

was appointed (December 2005) to render consultancy services and a legal
firm was entrusted with (February 2006) preparation of “Land Titling Act” to
have legal backing to the project. However, draft bills prepared by the firm
for declaration of titles in favour of land owners could not be passed as they
were in contravention of the Central Acts, such as, Indian Stamp (IS) Act,
1899, Registration Act, 1908 etc. A society called “Land Titling Society of
Andhra Pradesh” was formed (October 2007) to implement the project.
National Remote Sensing Agency (NRSA) was appointed to conduct aerial
survey of both agricultural lands and non-agricultural lands. However, aerial
survey of non-agricultural lands could not be completed due to technical
issues. Out of 914 villages, aerial survey of agricultural lands of 911 villages

152
Bhu Bharati is a pilot project taken up (2005) to reconstruct the basic land records in
Nizamabad district vide G.O.Rt.No.158, Revenue (SS-I) Department, dated 28 January
2005.

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 Audit Report (Revenue Sector) for the year ended 31 March 2016

was completed. Ground truthing153 of Land Parcel Maps154 (LPM) was

completed (2007) by the Implementing Agency in respect of these 911
villages. But no conclusive titles to the landed property were established till
April 2016 for want of legal backing to the project. Despite incurring an
expenditure of ` 37.73 crore up to March 2015, the Department had not built
up any legally enforceable land records. Thus, the expenditure incurred on the
project was unfruitful.

6.4.7 Scanning / Computerisation of Land Records

Erstwhile Government of Andhra Pradesh had issued orders155 (March 1995)

to scan and computerise the basic land records.
Status of scanning / computerisation of land records till the date of audit is
given below:
Sethwars Tippans Village Maps
Sl. Name of the AD, No. of
No. S&LR office villages Total Scanned Balance Total Scanned Balance Total Scanned Balance
1. Adilabad 1754 1754 837 917 346674 288453 58221 1754 1731 23
2. Mahabubnagar 1558 1558 986 572 543603 450531 93072 1558 1514 44
3. Nalgonda 1155 1155 1019 136 380189 270815 109374 1313 1287 26
4. Nizamabad 922 922 650 272 423271 314853 108418 922 849 73
5. Ranga Reddy 1055 1055 541 514 369250 128755 240495 1055 1045 10
TOTAL 6444 6444 4033 2411 2062987 1453407 609580 6602 6426 176

In three districts156 the reasons for not scanning were torn condition and non-
availability of land records. In two districts157, though records were available,
complete scanning was not done. DD, S and LR, Hyderabad and AD, S and
LR, Khammam had not furnished the details of scanning.

Action needs to be taken to construct missing records by conducting re-survey

or revision survey.

Consequences of improper maintenance of Land Records

Proper maintenance of land data/records at village / mandal level and

conducting periodical re-surveys and regular updation of basic land records
are of vital importance. A few cases of land disputes due to incorrect
maintenance of land records are discussed below:

6.4.8 Disputes on account of incorrect preparation of Village Maps

6.4.8.1 Audit observed (January 2016) in the office of the A.D, S and LR,
Nalgonda that in Gandhamvarigudem village, two survey numbers (418, 419)
overlapped a different survey number (417) in the village map. As per the
pahani, the land pertaining to two survey numbers (418, 419) was patta

153
In remote sensing, the verification of image interpretation by direct observation of the
ground.
154
Field measurement books.
155
G.O.Ms.No.166, Revenue (SS) Department, dated 30 March 1995.
156
Mahabubnagar, Nalgonda and Nizamabad.
157
Adilabad and Ranga Reddy.

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land158 and belonged to 35 pattadars. The land (survey no.417), which got
overlapped, was Government land assigned to landless poor. As a result,
dispute arose between pattadars and assignees when the assignees tried to
cultivate the land assigned to them. Pattadars (in survey nos. 418 and 419)
objected to cultivation by assignees on the ground that the land belonged to
them. Thus, incorrect preparation of village map and tippan led to dispute
between two parties.

In reply, Tahsildar confirmed (January 2016) that due to incorrect village map
and tippans, survey numbers were overlapping on a different survey number.

6.4.8.2 In the office of Tahsildar, Miryalaguda, Audit observed (December

2015) from the land records pertaining to the Alagadapa village of
Miryalaguda mandal that realtors had purchased a patch of 3 acres and 28
guntas of land in survey number 695 and applied for conversion of 2 acres and
11 guntas of land.

Audit observed from the village map of Alagadapa that the survey number 695
which had 3 acres and 28 guntas of land was smaller in size than survey
number 720 which had only 37 guntas of Government land.

Based on this discrepancy, the realtors had represented (May 2015) to the
Department to interchange the survey numbers along with related extent of
land to match the physical size of the survey numbers, which was not done till
the date of audit.

Tahsildar, Miryalaguda, stated (December 2015) that the extent of land in

survey number 695 (3 acres and 28 guntas) and the extent of land in survey
number 720 (37 guntas) were mistakenly printed vice versa for which the case
was referred (January 2013) to the AD, S and LR, Nalgonda. Reply from AD,
S and LR Nalgonda was awaited (December 2016).

6.4.8.3 During scrutiny of records of Tahsildar, Shamshabad, Audit

observed (May 2016) that as per khasra pahani159, survey number 62 of
Bahadurguda village contained 500 acres of Government land. However, in
the tippan and village map, the physical size of survey number 62 was shown
as smaller than the physical size of five survey numbers (53, 54, 56, 61 and 63
consisting of 9 acres 8 guntas, 15 acres 5 guntas, 7 acres 16 guntas, 16 acres
12 guntas and 15 acres 16 guntas respectively) totaling to 63 acres 17 guntas.
Further, Tahsildar stated that the above Government land of 500 acres falling
under survey number 62 was not physically available. Incorrect preparation,
maintenance and monitoring of land records thus led to unavailability of
Government land valued ` 24.42 crore.

In response, Tahsildar stated (May 2016) that the matter would be examined
and a detailed report submitted.

158
Lands which are owned by individuals (private lands).
159
Pahani which was prepared for the year 1954-55 was known as khasra pahani.

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Audit Report (Revenue Sector) for the year ended 31 March 2016

6.4.9 Dispute on account of improper changes based on Khasra Pahani

6.4.9.1 As per Sections 79 and 89 of Land Revenue Act, 1317 Fasli

(Hyderabad Code Vol. I), supplementary sethwars have to be issued to correct
the survey errors, duly obtaining the orders of competent authority.

During the scrutiny of Sethwar and correspondence files in the office of AD,
S and LR, Ranga Reddy, Audit observed that survey number 65 of Khanapur
village, Rajendranagar mandal, Ranga Reddy district contained an area of
5 acres 30 guntas of land and a larger chunk of this land, which was located
between the above survey number and the Osman sagar tank, was
un-surveyed.

However, as per Khasra Pahani, the area in survey number 65 was shown as
547 acres 27 guntas and was sub-divided into 33 parts (i.e., 65/1 to 65/33).
Out of this, an extent of 156 acres 17 guntas were recorded as patta and the
remaining 391 acres 10 guntas was recorded as Kharij khata160. The
un-surveyed land located between the above survey number and Osmansagar
tank was given a new survey number 297 with 350 acres. This indicates
improper maintenance of land records.

On this being pointed out, AD replied that the matter would be examined and
a detailed reply submitted in due course.

6.4.9.2 During scrutiny of records of AD, S and LR, Ranga Reddy, Audit
observed that two survey numbers (36 and 37) of Gopanpally village of
Serilingampally mandal consisted of 888 acres and 24 guntas without any sub-
divisions. Out of this, Government had allotted161 205 acres and 20 guntas
(survey number 37) and 191 acres and 36 guntas (survey number 36) of land
to the Government Employees Housing Society and University of Hyderabad,
respectively. However, some interested parties had made representations to
the Department (December 2004) claiming right over 90 acres (44 acres in
survey number 36 and 46 acres in survey number 37) in the above mentioned
survey numbers.

Departmental inquiries disclosed that the revenue records were tampered with
and wrong entries were recorded in the Khasra Pahani prepared in the year
1954-55. The Department, however, did not settle title of the land till date.

In response, AD, Ranga Reddy replied that the matter would be examined and
a detailed reply would be submitted in due course.

6.4.10 Non-finalisation of disputes on Maqtha162 Land

As per Section 3(2) (b) of the Andhra Pradesh (Telangana Area) Abolition of
Inams Act, 1955, all rights, titles and interests vesting in the inamdars in
respect of the inam lands shall cease and be vested absolutely in the State, free
from all encumbrances.

160
Lands which have been relinquished by the pattadars.
161
G.O.Ms.No.589, Revenue (Assign-III) Department, dated 10 July 1991 and
G.O.Ms.No.850, Revenue (Assign-III) Department, dated 24 September 1991.
162
Maqtha is a land grant similar to ‘Inam.’

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 Chapter VI - Land Revenue

6.4.10.1 During scrutiny of land records and correspondence files of the

office of the AD, S and LR, Ranga Reddy, Audit observed that Mr. ‘A’ and
his ancestors were the occupants of the maqtha land (to the extent of
196 acres and 11 guntas) in Fatheullahguda village of Ranga Reddy district
prior to survey (1946) and even thereafter till the Se-Salapahani163 for the
years 1956-59. Survey of the lands was conducted in the year 1946 and the
settlement records were published in 1952. These settlement records were
implemented in revenue records of 1959 where the above mentioned lands
were classified as Gairan164 / Poramboke. Aggrieved by this, the claimants
made several representations requesting the Department to verify the records
and declare the title in their favour.

Though many departmental inquiries were conducted to verify the title over
the land, no conclusive title was issued till April 2016. This resulted in
dispute over land valuing ` 570.11 crore.

In response, AD, Ranga Reddy replied that the matter would be examined and
a detailed reply submitted in due course.

6.4.10.2 Audit observed in the office of the Tahsildar, Malkajgiri that

16.01 acres of Government land in two survey numbers (578 and 585) of
Pakalkunta area in Alwal village was classified as maqtha in the Se-
Salapahani. However, the same lands were classified as patta lands in the
village account 3 (Pahani for the year 2013-14). Based on this classification,
occupants of the land made representations to the Department claiming
ownership.

As maqtha is also a kind of inam, on abolition of inams under the above Act,
all the maqtha lands were vested in the State. Thus, recording of the above
land as patta in the Pahani was incorrect.

In reply, Tahsildar stated that the matter would be examined and a detailed
reply submitted.

6.4.11 Non-updation of Sethwars of Forest Land

Audit observed (April 2016) in office of Assistant Director (AD), Survey and
Land Records, Nizamabad that an area of 4,690 acres and 05 guntas was in
dispute between the Departments of the Survey, Settlement and Land Records
and Forests on the ownership of the land as a result, land records i.e., Sethwars
were not updated till April 2016. The details of survey numbers, names of the
villages and extent of land are given in Annexure-III.

In reply, the AD stated that non-furnishing of Gazette Notification issued by

the Department of Forests declaring the above lands as forest lands along with
handing over report of the Revenue Department to the Survey Department
were the reasons for non-updation of land records.

163
Se-Salapahani means Pahani prepared for the years 1956-57, 1957-58 and 1958-59.
164
Grazing lands.

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Audit Report (Revenue Sector) for the year ended 31 March 2016

6.4.12 Delay in issue of Supplementary Sethwars

As per Sections 79 and 89 of Land Revenue Act, 1317 Fasli (Hyderabad Code
Vol. I), supplementary sethwars are issued whenever there is a change on
account of land assignment, land acquisition or change of irrigation sources
and any other changes in settlement record. These are issued by conducting
inspection of the lands after issuing notices to all the farmers having common
boundaries with the subject land under Section 9(2) of Andhra Pradesh Survey
and Boundaries Act, 1923. After approval of competent authority, this is to be
issued to the Tahsildar concerned for implementing the changes in the revenue
records.

During the scrutiny of records of offices of five ADs165, Audit observed from
the Register of Issue of Supplementary Sethwars that 830 applications had
been received during 1994 to 2015 for correction of survey errors, sub-
division of survey numbers on account of land assignment, land acquisition,
etc., and to issue supplementary sethwars. Out of these, supplementary
sethwars were issued in 500 cases leaving 330 cases pending as of April 2016.
Of these, 94 cases pertained to office of AD, Ranga Reddy and were pending
since 1994.

In response, AD, Nizamabad replied that inspection was completed and the
work was under process; three ADs166 replied that action would be taken to
issue supplementary sethwars and AD, Ranga Reddy replied that issue of
supplementary sethwars was pending for want of served copies of notices
issued under Section 9(2) of Andhra Pradesh Survey and Boundaries Act,
1923.

6.4.13 Discrepancy in extent of Land between Sethwar and Pahani

During the scrutiny of records of office of the Tahsildar, Kamareddy, Audit

observed that there was discrepancy in the extent of land between sethwar and
pahani in respect of test checked village Rameshwarpally. As per sethwar, the
total extent of land in the village was 1,198 acres and 20 guntas with 263
survey numbers. In 83 survey numbers, the extent of land in Pahani was 122
acres and 22 guntas more than that of the sethwar and in 36 survey numbers,
extent of land in Pahani was less than that of the sethwar by 14 acres and 19
guntas.

In the office of the Tahsildar, Nalgonda, Audit observed that there was a
difference of 819 acres and 35 guntas of land between sethwar (3,073 acres
and 38 guntas) and Pahani (3,893 acres and 33 guntas) in respect of Panagal
village.

In reply, two Tahsildars (Kamareddy and Nalgonda) stated that action would
be taken to reconcile the discrepancy by verifying previous years’ pahanis and
information relating to mutations.

165
Adilabad, Mahabubnagar, Nalgonda, Nizamabad and Ranga Reddy.
166
Khammam, Mahabubnagar and Nalgonda.

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6.4.14 Non-maintenance / Improper Maintenance of Village Level Land

Records

Government of Andhra Pradesh had introduced167 (March 1992) integrated

village accounts and prescribed maintenance of nine types of village
accounts168 for different purposes. During scrutiny of records, it was observed
that certain records were either not maintained or improperly maintained as
discussed in the following sub-paragraphs.

6.4.14.1 Non-maintenance of Village Level Land Records

Out of 26 mandal offices test checked, Audit observed that in four mandals169
Village Account 1 (Government Land Register) and in three mandals170,
Village Account 2 (Register of Changes) were not maintained.

In reply, all the Tahsildars stated that these village accounts would be
maintained henceforth.

6.4.14.2 Non-updation of Pahani

During the scrutiny of the land records such as pahani, Village Account 2 and
ROR I-B pertaining to Cheeryal village of Keesara mandal, the following
discrepancies were observed.

As per the Village Account 2, five sons had succeeded to properties on the
death of their father. Father had lands in three survey numbers (155, 156 and
157) of Cheeryal village. Sons of the demised, applied for mutation of land in
their names to the Tahsildar. Audit observed that lands in these survey
numbers, though mutated in ROR I-B, were not incorporated in pahani for the
faslis 1420 (2010-11) and 1424 (2014-15).

Similarly, while verifying village accounts pertaining to Rampally village, it

was observed that as per Village Account 2, applications for mutation of land
(survey number 563) were received in the year 2010. However, the names of
applicants were not included in Pahani for the fasli years 1420 and 1424
(2010-11 and 2014-15) against relevant survey numbers. As a result of this
mutation in the above two cases was not completed.

In Papannapet mandal, during the scrutiny of Mutation Register (2010-11) and

Pahani (2011-12), Audit observed that the names of the claimants were not
updated (in pahani) though mutations were ordered by the Tahsildar. In three
cases, there was variation in survey numbers between Pahani and Mutation
Register.

167
G.O.Ms.No.265, Revenue (L.R.-II) Department, dated 10 March 1992.
168
Village Account 1 (Government Land Register), Village Account 2 (Register of Changes),
Village Account 3 (Adangal), Village Account 4 (Register of holidays and Asami-wise
Land Revenue Demand Register), Village Account 5 (Demand Collection and Balance
Register), Village Account 6 (Chitta – Daily Collection Register), Village Account 7
(Irsalnama - Register of Reconciliation), Village Account 8 (Register of Irrigation sources)
and Village Account 11 (Receipt Register).
169
Adilabad, Ghatkesar, Malkajgiri and Shamshabad.
170
Ghatkesar, Malkajgiri and Shamshabad.

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Audit Report (Revenue Sector) for the year ended 31 March 2016

Tahsildars replied that the matter would be examined and a detailed reply
furnished.

Discrepancy in Land Records

6.4.14.3 As per Section 88 of the Land Revenue Act, 1317 Fasli (Hyderabad
Code Vol. I), all the survey numbers of village have to be shown within the
boundaries of village map.

During the scrutiny of Pahani of Tahsildar, Shamshabad, Audit observed that

Survey Numbers 138 to 141 covering an area of 10 acres and 3 guntas formed
part of Chinna Golkonda village. On verification of village map, these survey
numbers were shown outside the boundary of Chinna Golkonda village i.e.,
under the jurisdiction of Bahadurguda village which was adjacent to it.
However, these survey numbers except survey number 139 (11 guntas) were
not shown in the village map of Bahadurguda village. As a result, 9 acres and
32 guntas of land was neither included in village maps of Chinna Golkonda
village nor in Bahadurguda village.

In reply, Tahsildar replied that the matter would be examined and a detailed
report submitted.

6.4.14.4 During scrutiny of the records of 26 mandal offices test checked,

Audit observed that in four mandals171 there were discrepancies between
different registers being maintained in the Tahsildar offices as discussed
below:

In Bodhan mandal, there was variation in extent of land between the Mandal
level Government Land Register and Village Account 1 as detailed in
Annexure-IV (a).

In Mancherial mandal, there was discrepancy between Village Account 3

(pahani) and khasra pahani as detailed in Annexure-IV (b).

In Nalgonda mandal, there was variation in extent of land between the Mandal
level Government Land Register, Village Account 1 and Pahani as detailed in
Annexure-IV(c).

In Miryalaguda mandal, on cross verification of Village Account No.1,

pahani, ROR I-B and Mandal level Government Land Register, discrepancies
were observed in extent, sub-survey numbers and names of the owners as
detailed in Annexure-IV(d).

After this was pointed out by Audit, all the four Tahsildars replied that action
would be taken to rectify the discrepancies.

Discrepancy in allotment of Sub-survey Numbers

6.4.14.5 When a part of land in a survey number is alienated on account of

sale, partition etc., for carrying out mutations in revenue records, the main
survey number is to be sub-divided and if the sub-survey number is to be

171
Bodhan, Mancherial, Miryalaguda and Nalgonda.

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divided further, then sub sub-survey numbers are to be given/ allotted to avoid
confusion and litigation in future.

In three Tahsildar offices172, Audit observed that there were discrepancies

while allotting sub-survey or sub sub-survey numbers as detailed in
Annexure-V (a).

In Nizamabad mandal, 97 acres and 36 guntas of land was assigned without

allotting sub-division numbers as detailed in Annexure-V (b).

After this was pointed out by Audit, four Tahsildars173 replied that action
would be taken to rectify the discrepancies.

6.4.15 Non-maintenance of prescribed Registers/ Records at Mandal Level

As per the provisions of BSO and Mandal Accounts Manual, Register of

Bought-in-Lands, Register of Leased out Lands, Register of Relinquishment
and Register of Transfer of Lands are to be maintained in mandal offices to
ensure proper maintenance of land records.

During scrutiny of records, Audit observed that these registers were not being
maintained in any of the 26 mandals.

In response, 22 Tahsildars174 replied that the above registers would be

maintained and Tahsildar, Papannapet replied that the matter would be
examined and detailed reply submitted.

Tahsildar, Miryalaguda replied that as there were no cases, these registers

were not being maintained. The reply of the Tahsildar is not acceptable as a
Register is required to be maintained to watch the track of the cases by
indicating the number of cases as ‘NIL’.

Tahsildar, Asifnagar replied that as town survey system was introduced in the
mandal, these registers were not applicable and Tahsildar, Shaikpet replied
that transfer of lands register need not be maintained in this office. The replies
of the Tahsildars175 were not acceptable, as without maintenance of these
registers, mutation or change in classification could not be known.

As per the provisions of BSO 15, Government lands are assigned to the
landless poor either on payment of market value or free of cost. Details of
such lands have to be entered in a register as Mandal Account No.4 and
should be maintained permanently to watch that these lands are not alienated
by the assignee and also to avoid another claim for assignment of land by the
same assignee.

172
Bodhan, Miryalaguda and Suryapet.
173
Bodhan, Miryalaguda, Nizamabad and Suryapet.
174
Adilabad, Bahadurpura, Bodhan, Gadwal, Ghatkesar, Itikyala, Jannaram, Kalher, Kalluru,
Kamareddy, Keesara, Khammam (Urban), Kothagudem, Malkajgiri, Mancherial,
Nalgonda, Nizamabad, Shamshabad, Suryapet, Tirumalgiri, Wanaparthy and Zaheerabad.
175
Asifnagar and Shaikpet.

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Audit Report (Revenue Sector) for the year ended 31 March 2016

It was, however, observed that no such register was being maintained in four
Tahsildar offices176.

In response, three Tahsildars177 replied that the above register would be

maintained from now onwards; Tahsildar, Asifnagar replied that the above
register was not required to be maintained as town survey system had been
introduced in the mandal. The reply of Tahsildar, Asifnagar was not correct as
this is a permanent register and was to be maintained and updated regularly to
maintain a list of assignees and to watch that these lands are not alienated by
the assignees and also to avoid another claim for assignment of land by the
same assignee.

6.4.16 Failure to complete Jamabandi within stipulated time

As per the instructions issued in BSO 12(5), jamabandi is to be completed

before the end of fasli i.e., 30 June. Mandal demand statements must be closed
within 15 days after the completion of fasli, so as to finalise the settled
demand in respect of water tax, road cess and preparation and updation of land
records such as Government Land Register (Village Account 1), Register of
Changes (Village Account 2) and Pahani (Village Account 3).

Audit scrutinised jamabandi records pertaining to five fasli years from 1420 to
1424 of the 26 selected mandals except four mandals178 of Hyderabad district
where jamabandi was exempted.

Out of 110 jamabandis due in 22 mandals during the last five fasli years, 36
jamabandis (32.73 per cent) were completed with delays ranging from one to
more than three years and in the remaining 74 cases (67.27 per cent)
jamabandi was not completed.

In eight mandals,179 jamabandi was not completed in any of the five fasli
years (1420 to 1424) as detailed in Annexure-VI.

In reply, 17 Tahsildars180 replied that the matter would be brought to the notice
of higher authorities for taking necessary action; two Tahsildars181 replied that
the matter would be examined; Tahsildar, Mancherial replied that though
jamabandi for the faslis 1420 and 1421 was completed, records could not be
traced and jamabandi of faslis, 1422 to 1424 was under process; Tahsildar,
Malkajgiri replied that as there was no water tax demand, jamabandi was not
conducted; and Tahsildar, Zaheerabad replied that jamabandi of faslis 1422 to
1424 was under process.

176
Asifnagar, Bahadurpura, Malkajgiri and Tirumalgiri.
177
Bahadurpura, Malkajgiri and Tirumalgiri.
178
Asifnagar, Bahadurpura, Shaikpet and Tirumalgiri.
179
Gadwal, Ghatkesar, Itikyal, Keesara, Khammam (Urban), Kothagudem, Malkajgiri and
Shamshabad.
180
Adilabad, Bodhan, Gadwal, Ghatkesar, Itikyala, Jannaram, Kalher, Kalluru, Kamareddy,
Keesara, Khammam (Urban), Kothagudem, Miryalaguda, Nalgonda, Nizamabad,
Shamshabad and Suryapet.
181
Papannapet and Wanaparthy.

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As delay in completion of jamabandi affects preparation and updation of

Village Accounts 1, 2 and 3, the Department should take steps for timely
completion of Jamabandi.

6.4.17 Conclusion

Audit observed that in many offices Provisions of Land Laws relating to

maintenance of land records were not complied with. Even though more than
60 years had elapsed, no re-survey was taken up. Though a pilot project was
taken up to build up land records by expending ` 37.73 crore, the Department
could not build up any legally enforceable land records. Early precautionary
measures such as scanning / computerisation were not taken up to preserve the
basic land records. Basic land records, Village Accounts and registers
maintained at mandal level were either not being maintained or maintained
improperly. The improper maintenance of land records led to improper
changes based on Khasra Pahani, non-finalisation of disputes on maqtha land,
non-updation of forest land and disputes between pattadars and assignees, etc.
Further, there was undue delay in finalisation of Village Accounts and lack of
co-ordination was also observed within and between the departments such as
Forest / Survey, Settlement and Land Records.

6.5 Non-realisation of Cost of Land

As per the Board’s Standing Order (BSO) No.24, read with Government
order182 dated 14 September 2012, alienation of Government land to a
company, institution or private individuals for any public purpose will
normally be on collection of its market value and subject to the terms and
conditions prescribed in the BSO. The BSO allows the Government to permit
possession of the land in advance by the applicant in the event of any
emergent circumstances pending formal approval of the alienation proposal.

Audit scrutiny (between September 2015 and February 2016) of alienation

records in the offices of Deputy Collector & Tahsildar, Saroornagar, and
Tahsildars, Shaikpet and Suryapet showed that in five cases, the Government
had permitted advance possession of 16.37 acres of land in Nalgonda,
Hyderabad and Ranga Reddy districts between 2011 and 2013 to three entities
viz., a State Government Company, a State Government Corporation and a
local body pending finalisation of alienation proposals. However, in the
absence of a specific time limit, the alienation proposals were still pending
finalisation even after a lapse of two to four years from the date of handing
over of land. Thus, non-finalisation of alienation proposals resulted in non-
realisation of cost of land amounting to ` 8.01 crore in five cases.

After Audit pointed out the cases (between December 2015 and February
2016), Tahsildar, Shaikpet replied (August 2016) that the matter had been
taken up with District Collector, Hyderabad for realisation of cost of land.
The Deputy Collector and Tahsildar, Saroornagar stated (June 2016) that the
cost of land could not be realised as a writ petition (WP No. 22947/2009) was
pending in the High Court pertaining to the land alienated. The reply was not
correct as the land alienated fell in the survey number 197/1, whereas the WP

182
G.O.Ms.No.571, Revenue (Assignment.I) Department, dated 14 September 2012.

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Audit Report (Revenue Sector) for the year ended 31 March 2016

pending in Hon’ble High Court related to survey numbers 197/2 to 197/49.

The Tahsildar Suryapet replied that the matter would be examined and
detailed reply furnished in due course.

The matter was referred to the Department in June 2016 and to the
Government in July 2016; replies have not been received (December 2016).

6.6 Non-levy / Short Levy of Conversion Tax and Non-levy of

Penalty

Section 3(1) read with Section 4 (1) of Telangana Agricultural Land

(Conversion for Non-agricultural Purposes) Act, 2006, stipulates that no
agricultural land in the State shall be used for non-agricultural purposes,
without prior permission of the competent authority. Every owner or occupier
of agricultural land shall pay a conversion tax at the rate of nine per cent of the
basic value183 of the land converted for non-agricultural purposes. If any
agricultural land has been put to use for non-agricultural purposes without
obtaining permission, the RDO, being the competent authority to convert the
land use from agricultural purposes to non-agricultural purpose, shall impose a
penalty of 50 per cent of the conversion tax under Section 6 (2).

Audit scrutiny (December 2015 and January 2016) of conversion tax files for
the fasli years 1415 to 1424 (2005 to 2014) in three offices184 of Tahsildars,
showed that 23.69 acres of agricultural land were put to use for non-
agricultural purposes without prior permission of the competent authorities in
five cases. However, the Department levied only conversion tax without
imposing any penalty. It was further observed that conversion tax of
` 2.48 lakh was not levied / short levied in two out of five cases due to
incorrect adoption of basic value and adoption of lesser extent of land used for
non-agricultural purposes. Besides, penalty leviable in the above five cases
worked out to ` 3.98 lakh at the rate of 50 per cent of conversion tax. Thus,
the total non-levy / short levy of conversion tax and non- levy of penalty
amounted to ` 6.46 lakh.

After Audit pointed out (December 2015 and January 2016) these cases,
Tahsildar, Khammam (Urban) replied that the matter would be brought to the
notice of the competent authority for taking necessary action. The two
remaining Tahsildars replied that the matter would be examined and intimated
to Audit in due course.

The matter was referred to the Department in June 2016 and to the
Government in July 2016; replies have not been received (December 2016).

183
‘Basic value’ means the land value entered in the Basic Value Register notified by
Government from time to time and maintained by the Sub-Registrar.
184
Ghatkesar, Khammam (Urban) and Miryalaguda.

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6.7 Failure to execute Lease Deed and Non-collection of Lease Rent

BSO 24 A, provides for grant of Government land and buildings for temporary
occupation for non-agricultural purposes in favour of individuals, private
bodies, companies or associations and local bodies.

Audit scrutiny (September 2015) of records of the office of Deputy Collector

& Tahsildar, Serilingampally, showed that State Government in its order185
dated 30 September 2005, had allotted (September 2005) 1 acre and 36
guntas186 of land in Khajaguda Village, Serilingampally Mandal on lease basis
for a period of 25 years to AP Billiards and Snooker Association. The lease
rent was fixed at ` 50,000 per year with a provision for enhancement of rent
by 10 per cent on the existing lease rent for every five years and on a
condition that the land should be utilised within two years from the date of
grant of lease failing which the lease would automatically stand terminated.

It was, however, observed from the records that though the land was handed
over to the said Association on lease basis in 2005, no action was taken to
execute the lease deed and consequently rent was not being collected as of
November 2015. This resulted in non-collection of lease rent of ` 5.25 lakh.

After Audit pointed out (September 2015) the case, Deputy Collector &
Tahsildar replied that action would be taken to collect the amount and execute
a lease deed.

The matter was referred to the Department in June 2016 and to the
Government in July 2016; replies have not been received (December 2016).

185
G.O.Ms.No.1699, Revenue (ASN.V) Department, dated 30 September 2005.
186
40 guntas make one acre.

83