Hyderabad: Income-tax troubles are haunting plot owners seeking regularisation of encroached lands in the city. Plot owners need to pay 50 per cent to 100 per cent of market rate of the land to the government in the form of bank DDs to submit applications for land regularisation at the MRO offices.

With market value of land running into thousands of rupees per square yard in Hyderabad, each occupant has to pay lakhs for land regularisation. For taking DDs worth lakhs of rupees from banks, submission of pan numbers is mandatory. If a pan number is provided, it will invite income-tax problems as they need to show the source of the money.

Either they need to prove that the amount was earned by selling property in some other location or earned through business or salary. The 15-day time that was given for submitting applications was not enough to carry out such big transactions like selling of property.