Hyderabad, Aug. 25 -- For years, Section 22A of the Registration Act was something only government clerks and property lawyers thought about. Since early August this year, it has become the most feared phrase in Hyderabad's property market.

Thousands of owners in Hyderabad, Rangareddy, Medchal-Malkajgiri and Sangareddy have gone to sell a flat or a plot, only to be turned away. Their property, they were told, is on a government list of places that cannot be registered. Sales have stopped, while banks have refused loans against these properties.

Revenue Minister Ponguleti Srinivas Reddy apologised on August 17. The Opposition wants him to resign. The Assembly meets on September 7, and both the Bharat Rashtra Samithi (BRS) and the Bharati...