Verbal leases and cash deals plague Hyderabad rentals

The Story in Brief

Only about 2% of residents in a Hyderabad ward had formally registered rental agreements, a sub-registrar told the Times of India. Most rentals in areas such as Begumpet and Cyberabad are done through verbal arrangements without police verification, often settled in cash, to avoid stamp duty and higher tax liabilities. This raises concerns over tax evasion, illegal sub-leasing and security breaches.

Resident welfare associations report high tenant turnover, especially among bachelors, which landlords exploit to skip agreements. Tenants like Shivam Dubey in Panjagutta face sudden eviction and withheld deposits. The United Federation of Resident Welfare Associations is running awareness campaigns urging registered agreements as a safeguard for both parties, while gated communities are making police verification mandatory and seeking stricter rules from the Cyberabad police.