The Azamabad Industrial Area (Termination and Regulation of Leases) Act, 1992.

THE AZAMABAD INDUSTRIAL AREA (TERMINATION AND 
REGULATION OF LEASES) ACT, 1992. 
(ACT NO. 15 OF 1992) 
ARRANGEMENT OF SECTIONS 
Sections 
1. Short title and commencement. 
2. Definitions. 
3. Termination of Leases. 
4. Application for fresh lease. 
5. Eviction. 
6. Manner of eviction. 
7. Punishment for disobedience of eviction order. 
8. Liabilities for damages etc. 
9. Appeals. 
10. Revision. 
11. Omitted. 
12. Offences by Companies. 
13. Approval of Plans. 
14. Penalty for construction or use of land and structure 
contrary to terms of lease. 
15. Power to stop erection of structure. 
16. Orders of demolition of structures. 
17. Savings. 
18. Bar of jurisdiction. 
19. Omitted. 
20. Act to over ride other laws. 
21. Power to make Rules. 
2  [Act No. 15 of 1992] 
22. Power to remove difficulty. 
23. Validation. 
 
THE AZAMABAD INDUSTRIAL AREA (TERMINATION AND 
REGULATION OF LEASES) ACT, 1992.1 
 
ACT No.15 OF 1992. 
 
1. (1) This Act may be called the Azamabad Industrial 
Area (Termination and Regulation of Leases) Act, 1992. 
 
 (2) It shall come into force on such date as the 
Government may, by notification, appoint. 
 
2. In this Act, unless the context otherwise requires,- 
 
 (a) “appointed date ” means a date appointed under 
sub-section (2) of section 1; 
 
 (b) “Azamabad Industrial Area ” means the land owned 
by Government and situated at Mushirabad within the limits 
of Hyderabad Municipal Corporation, divided into plots of 
different sizes for indus trial purpose by the erstwhile 
Nizam‟s Government and known as „Azamabad Industrial 
Area‟; 
 
 (c) “Competent Authority ” means any authority, officer 
or person authorised by the Government, by notification, to 
perform the functions of the Competent Authority  under this 
Act; 
 
 (d) “demised plot ” means any plot of land or part 
thereof in the Azamabad Industrial Area, which has been 
                                                           
1. The Azamabad Industrial Area (Termination and Regulation of Leases) 
Act, 1992 received the assent of the President on the 27 th May, 1992. 
The said Act in force in the combined State, as on 02.06.2014, has been 
adapted to the State of Telanga na, under section 101 of the Andhra 
Pradesh Reorganisation Act, 2014 (Central Act 6 of 2014) vide. the 
Telangana Adaptation of Laws Order, 2016, issued in G.O.Ms.No.45, 
Law (F) Department, dated 01.06.2016. 
Short title and 
commencement. 
Definitions. 
2  [Act No.15 of 1992] 
leased out to any person for industria l use either by 
erstwhile Nizam ‟s Government or by the Government of 
Hyderabad or by the Government of  Andhra Pradesh or in 
respect of which there is other arrangement with any 
person; 
 
 (e) “Government” means th e State Government of 
2Telangana; 
 
 (f) “notification” means a notification published in the 
2Telangana Gazette and the word „notified‟ shall be 
construed accordingly; 
 
 (g) “person” means an individual and includes a firm or 
a branch thereof, a body corporate or a branch thereof or 
any association or a joint Hindu Family or a Company; 
 
 (h) “person in occupation ” includes lessee, sub -lessee 
or any person who is in occupation of the demised plot 
under an arran gement with the erstwhile Nizam ‟s 
Government or the erstwhile Government of Hyderabad or 
the Governmen t of Andhra Pradesh or any other person 
who has been inducted into the demised plot; 
 
 (i) “prescribed” means prescribed by rules made by 
the Government under this Act; 
 
 (j) “structure” includes,- 
 
  (a) a  building, a house, shop, hut, shed or other 
structure or enclosure , whether roofed or not of what soever 
material constructed and includes every part of it; 
 
  (b) all walls, verandahs, platforms, door steps and the 
like; 
                                                           
2. Substituted by G.O.Ms.No.45, Law (F) Department, dated 01.06.2016.  
[Act No.15 of 1992]  3 
  (c) a tent or other portable or temporary shelter. 
 
3[3. (1) (a) Notwithstanding anything contained in the 
Indian Contract Act , 1872, the Transfer of Property Act, 
1882, or any other law for the time being in force , and the 
terms and conditions of any lease entered into or other 
arrangement made with any person in respect of any 
demised plot either by the erstwhile Nizam ‟s Government or 
by the erstwhile Governm ent of Hyderabad or by the 
Government of Andhra Pradesh prior to the appointed date, 
all those leases, sub leases or other arrangements made or 
entered into through a registered deed or otherwise in 
respect of all demised plots in the Azamabad Industrial 
Area, which after due enquiry attract one or more of the 
ground for cancellation of lease as specified in clause (b) 
shall stand terminated on the appointed date and thereupon 
all such leases, sub-leases or any other ar rangement 
whatsoever made by the  person in occupation of the 
demised plot shall stand annulled and every such demised 
plot shall vest in the Governm ent free from all 
encumbrances; 
 
  (b) Notwithstanding anything contained in any other 
law for the time being in force, the leases of plots or portions 
shall be cancelled on either all or any of the following 
grounds, namely:- 
 
   (i) misusing of land for a purpose other than the 
purpose for which land was allotted including non-user; or 
 
   (ii) sub-letting or transferring the plots or portions of 
plots by entering into disguised partnerships and oth er 
unauthorised transfer of interest in the plot; or 
 
                                                           
3. Sections 3 & 4 with marginal  headings substituted by Act No.1 of 
2000. 
Termination of 
Leases. 
Central Act 9 of 1872. 
Central Act 4 of 1882. 
4  [Act No.15 of 1992] 
   (iii) violation of any terms, conditions or covenant 
specified in the Lease Deed. 
 
 Explanation: For the purpose of this Act, where a 
lessee enters into a partnership, agreement or other 
arrangement for carrying on any activity whatsoever on the 
demised plot, then notwithstanding anything in the Indian 
Partnership Act, 1932, it shall also be deemed to be a 
violation of the conditions of the lease. 
 
 (2) Les sees of plots whose leases shall not be 
cancelled under clause (b) of sub -section (1) shall be 
entitled to  a grant of fresh l ease with effect from the 
appointed date and renewal thereof from time to t ime on 
such terms and conditions as may be prescribed by the 
Government. 
 
 (3) The Lessees specified in sub -section (2) may, in 
lieu of renewal of lease, opt for free -hold rights in respect of 
the demised plots of land by paying a  price equivalent to 
75% of the market value as specifie d for the area in market 
value g uidelines under section 47 (a) of the Indian Stamp 
Act, 1899. 
 
 (4) Upon the termination of the leases or other 
arrangement in respect of the plot under sub-section (1) the 
rights and liab ilities as between the parties to the lease or 
other arrangement in respect of plot shall cease and 
determine, but any amount due to the Government from the 
aforesaid person under the lease or other arrangement so 
terminated shall be recovered as an arrear of land revenue. 
 
4. (1) On termination of lease or other arrangement s 
made under clause (a) of sub -section (1) of section 3, a 
person in occupation and running an industry on the 
appointed date may apply for a fresh lease in the manner 
prescribed. 
Central Act 9 of 1932. 
Application for 
fresh lease. 
Central Act 2 of 1899. 
[Act No.15 of 1992]  5 
 (2) On receipt of an application under sub -section (1), 
the Competent Author ity, may where he is satisfied that the 
applicant has actually been using the demised plot for 
industrial purpose, and  he deserves grant of lease, shall 
grant a lease on such terms and conditions as may be 
prescribed.] 
 
5. (1) Where a lease or other arrangement with regard to 
a demised plot stands terminated 4[under clauses (a) and 
(b) of sub-section (1) of section 3, and where no fresh le ase 
has been granted to the occupant , if any, under sub-section 
(2) of section 4, the lessee or the occupant as the ca se may 
be of such demised plot] shall vacate the same and deliver 
possession thereof to the Competent Authority within thirty 
days from the date of receipt of orders refusing to grant a 
fresh lease: 
 
 Provided that the perio d of thirty days aforesaid may, 
on the application by 4[the lessee or the occupant as the 
case may be of such demised plot] be extended by the 
Competent Authority for a further period not exceeding thirty 
days: 
 
 Provided further that where there is a stru cture on the 
demised plot, 4[the lessee or the occupant as the case may 
be of such demised plot ] shall demolish such structure and 
deliver vacant possession of the demised plot to the 
Competent Authority within a period of thirty days after the 
expiry of t he original period of thirty days or the extended 
period, if any, granted under this sub-section. 
 
 (2) 4[Where the lessee or the occupant as the case may 
be of the demised plot] fails to demolish the structure, within 
the stipulated time, the demised plot  along with such 
                                                           
4. Substituted by Act No.1 of 2000. 
Eviction. 
6  [Act No.15 of 1992] 
structure shall vest in the Government and no compensation 
shall be payable in respect of such structure. 
 
6. (1) Where any person fails or refuses to vacate and 
deliver vacant possession of the demised plot under section 
5, the Competent Authority shall serve an order of eviction in 
the manner prescribed on the person in occupation of the 
demised plot or on his agent requiring him to vacate and 
deliver possession thereof within such time as may be 
specified in such  order and after receipt o f such order the 
person in occupation of the demised plot shall vacate the 
same and deliver possession thereof to the Competent 
Authority within such time as may be specified in such 
order. 
 
 (2) Where the person in occupation of the demised plot 
or portion thereof fails or refuses to vacate the demised plot 
or portion thereof within the time specified in the order 
under sub -section (1), the Competent Authority may take 
possession of the demised plot from the person in 
occupation t hereof and where any such Competent 
Authority is resisted in the exercise of such power or 
discharge of such duty, he may direct any Police Officer not 
below the rank of a Sub-Inspector to render such assistance 
as may be necessary, to enable the  Competent Authority to 
exercise such power or discharge such duty. 
 
 (3) Where a structure has been constructed on the 
demised plot, possession of which is to be taken under this 
Act and the same is found locked, the Competent Authority 
may either cause the premise s sealed or in the presence of 
two or more witnesses break or cause it to be broken open 
by its door, gate or other barriers and enter the premises: 
 
 Provided that,- 
 
Manner of 
eviction. 
[Act No.15 of 1992]  7 
  (a) where any structure is forced open, an inventory 
of the articles found in the prem ises shall be taken in the 
presence of two or more witnesses; 
 
  (b) where any person has been evicted from the 
demised plot under sub -section (2) of section 6, the 
Competent Authority may, after giving thirty days notice to 
the person from whom possession  of the demised plot has 
been taken after publishing the notice in atleast one 
newspaper having circulation in the locality, remove or 
cause to be removed or dispose of by public auction any 
property remaining on such demised plot; 
 
  (c) where any property is sold under clause (b), the 
sale proceeds thereof shall,  after deducting the expenses of 
the sale and the amount, if any, due to the State 
Government or any other authority on account of arrears of 
rent or damages or costs, be paid to such perso n or 
persons as may appear to the Competent Authority to be 
entitled to the same. 
 
7. Any person continuing in occupation beyond the 
period specified in the order of eviction issued under sub -
section (1) of  section 6, shall be punishable with 
imprisonment of either description which may extend to one 
year or with fine which may extend to five thousand rupees 
or with both. 
 
8. Where a person fails to deliver possession of the 
demised plot within the time specified in the order referred 
to in sub-section (1) of section 6, he shall in addition to any 
penalty to which he is liable under this Act, be also liab le for 
payment of damages or mes ne profits for each day of such 
unauthorised occupation from the date of expiry of the 
period specified in the said order till the date of delivering 
possession of the demised plot. 
 
Punishment for 
disobedience of 
eviction order. 
Liabilities for 
damages etc. 
8  [Act No.15 of 1992] 
9. Any person aggrieved by an order passed by the 
Competent Authority under the provisions of the Act may 
appeal against such order to the Government within thirty 
days from the date of receipt of such order and the 
Government may, after giving an opportunity to the parties 
pass such orders as they deem fit and the decision of the 
Government thereon shall be final. 
 
10. The Government may, in their discretion at any time, 
either suo-motu or on application, call for and examine the 
record of any order passed or proceedings recorded by the 
Competent Authority under the provisions of this Act for the 
purpose of satisfying themselves as to the legality or 
propriety of such order or as to the regularity of such 
proceedings and pass such order in reference thereto as 
they think fit: 
 
 Provided that the Government shall not pass any order 
prejudicial to any party unless such party has had an 
opportunity of making a representation. 
 
5[11. [xxx]] 
 
12. Where an offence against any of the provisio ns of this 
Act or any rule made  thereunder has been committed by a 
company, every person, who at the time the off ence was 
committed was in  charge of, and was responsible to the 
company for the conduct shall be deemed to be guilty of the 
offence and shall be liable to be proceeded against and 
punished accordingly: 
 
 Provided that nothing contained in this sub -section 
shall render any such person liable to any punishment, if he 
proves that the offence was committed without his 
                                                           
5. Section 11 omitted by Act No.1 of 2000. 
Appeals. 
Revision. 
Offences by 
Companies. 
[Act No.15 of 1992]  9 
knowledge or that he had exercised all due diligence to 
prevent the commission of such offence. 
 
 (2) Notwithstanding anything in sub -section (1) where 
any such offence has been committed by a Company and it 
is proved that the offence has been com mitted with the 
consent or connivance of, or is attributable, to any neglect 
on the part of, any Director, Manager, Se cretary or other 
officer of the  Company, shall be liable to be proceeded 
against and punished accordingly. 
 
 Explanation: For the purpose of this section,- 
 
  (a) “Company” means a company as defined in the 
Companies Act, 1956 and includes a  firm, a society or other 
association of individuals; and 
 
  (b) “Director” in relation to,- 
 
   (i) a firm, means a partner in the firm; 
 
   (ii) a  society or other association of individuals 
means the person who is entrusted, under the rules of the 
society or other association, with the management of the 
affairs of the society or other association, as the case may 
be. 
 
13. No person shall take up construction of any structure 
or carry on any alternations or additions to existing 
structures on the demised plot without obtaining the prior 
written approval of the Competent Authority. 
 
14. (1) Whoever undertakes or carri es out construction of 
or alterations to any structures on the demised plot contrary 
to the terms of the lease deed shall, on conviction, be 
punished with fine which may extend to ten thousand 
rupees, and in the case of a continuing cont ravention, with 
Approval of Plans. 
Penalty for 
construction or 
use of land and 
structure contrary 
to terms of lease. 
10  [Act No.15 of 1992] 
an additional fine which may extend to five hundred rupees 
for every day during which such contravention continues 
after conviction for the first such contravention. 
 
 (2) Any person who uses the demised plot and 
structures thereon contrary to the terms of the lease deed or 
in contravention of the provisions of any rules made in this 
behalf shall, on conviction, be punished with fine which may  
extend to five thousand rupees. 
 
15. (1) Where the erection of any structure on the demised 
plot has been commenced or is being carried on , in 
contravention of the terms of the lease deed in relation to 
the demised plot, any officer of the Government empowered 
in this behalf may, in addition to any prosecution that may 
be instituted under this act make an order requiring the said 
operations in relation to such erection to be discontinued on 
and from the date of the service of the order. 
 
 (2) Where such erection operations are not 
discontinued in pursuance of the order under sub -section 
(1), the Competent Authority may require any Police Offic er 
not below the rank of a Sub -Inspector to remove the person 
by whom such operations are being carried on and all his 
assistants and workmen from such place within such time 
as may be specified in the requisition and such police officer 
shall comply with the requisition and shall watch the place 
so as to ensure that the erection of structures shall not be 
continued. 
 
 (3) Any person failing to comply with an order made 
under sub-section (1) shall, on conviction, be punished with 
fine which may extend to fi ve hundred rupees for every day 
during which non -compliance continues after the service of 
the order. 
 
Power to stop 
erection of 
structure. 
[Act No.15 of 1992]  11 
 (4) No compensation shall be payable for any damage 
or loss which a person may sustain in consequence of an 
order made under sub-section (1). 
 
16. (1) Where the erection of any structure in the demised 
plot has been completed, or any existi ng building is altered, 
in contravention of the terms of the lease deed in relation to 
the demised plot the Competent Authority may, in addition 
to any prosecution that may be instituted under this Act, 
make an order directing that such erection shall be 
demolished by the owner thereof within such period not 
exceeding fifteen days as may be specified in the order, and 
on the failur e of the owner to comply with the order, the 
Competent Authority may himself cause the structure to be 
demolished and the expenses of such demolition shall be 
recoverable from the owner: 
 
 Provided that no such order shall be made unless the 
owner has been  given a reasonable opportunity to show 
cause why the order should not be made. 
 
 (2) Any person aggrieved by an order under sub -
section (1) may appeal against that order within fifteen days 
from the date thereof to the Government. The Government 
may after giving an opportunity to the parties to the ap peal 
make such orders as they deem fit and the decision of the 
Government thereon shall be final. 
 
17. No suit, prosecution or other legal proceedings shall 
be against the Government or the Competent Authority for 
any damage caused or is likely to be caused or any injury 
suffered or is likely to be suggested by virtue of the 
provisions of this Act or by anything which is in good faith 
done or intended to be done in pursuance of this Act or the 
rules made thereunder. 
 
Orders of 
demolition of 
structures. 
Savings. 
12  [Act No.15 of 1992] 
18. No decision made or order passed or proceeding 
taken by any Officer or Competent Authority or the 
Government under this Act, shall be called in question 
before a civil court in any suit, a pplication or other 
proceeding and no injunction shall be granted by any court 
in respect of any proceeding, taken, or about to be taken by 
such Officer or Competent Authority or Government in 
pursuance of any power conferred by or under this Act. 
 
6[19. [xxx]] 
 
20. The provisions of this Act and the rules made 
thereunder shall have effect, notwithstanding anything 
inconsistent therewith in any other law for the time being in 
force, or any custom, usage or agreement, or decree or 
order of a court, tribunal or other authority. 
 
21. (1) The Government  may, by notification, make rules 
for carrying out all or any of the purposes of this Act. 
 
 (2) In particular and without prejudice to the generality 
of the foregoing power, such rules may provide for,- 
 
  (a) guidelines and procedure to be followed where  a 
lessee intends to surrender his lease-hold rights; 
 
  (b) guidelines to the Competent Authority for 
allotment of resumed plots or portions thereof; 
 
  (c) s pecifying the Authority Competent to enter into 
fresh lease and the procedure thereof; 
 
  (d) manner of demolition of unauthorised 
constructions on the demised plot and specifying authorities 
and procedure therefor; 
                                                           
6. Section 19 omitted by Act No.1 of 2000. 
Bar of jurisdiction. 
Act to over ride 
other laws. 
Power to make 
Rules. 
[Act No.15 of 1992]  13 
  7[(e) revision of rent, premium , quit rent from time to 
time and the collection thereof or any other amount due 
from any person in respect of the demised plot.] 
 
 (3) Every rule made under this Act shall immediately 
after it is made, be laid before the Legislature of the State if it 
is in Session and if it is not in Session in the Session 
immediately following for a total  period of fou rteen days 
which may be comprised in one Session or in two 
successive Sessions, and if before the expiration of the 
Session in which it is so laid or the Session immediately 
following, the Legislature agrees in making any modification 
in the rule or in the  annulment of the rule, the rule shall from 
the date on which the modification or annulment is notified 
have effect only in such modified form or shall stand 
annulled, as the case may be; so , however that any such 
modification or annulment shall be without prejudice to the 
validity of anything previously done under that rule. 
 
22. If any difficulty arises in giving effect to the provisions 
of this Act, the Government may, by order in the 8Telangana 
Gazette, make such provisions not inconsistent with the 
purposes or provisions of this Act, as appear to them to be 
necessary or expedient for removing the difficulty. 
 
23. Notwithstanding anything in any judgement, decree, or 
order of any court or other authority,- 
 
 (a) no suit or other proceeding shall be maintained or 
continued in any court or before any authority  for the 
continuance of the lease, sub-lease or other arrangement or 
for the lessee, sub -lessee or person in occupation staying 
on the demised plot and all su ch proceedings shall abate; 
and 
                                                           
7. Substituted by Act No.1 of 2000. 
8. Substituted by G.O.Ms.No.45, Law (F) Department, dated 01.06.2016. 
Power to remove 
difficulty. 
Validation. 
14  [Act No.15 of 1992] 
 (b) no court shall enforce any decree or order directing 
the continuance of the lease, sub -lease or other 
arrangement to be in occupation of the demised plot. 
 
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