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This research paper examines the environmental consequences of Special Economic Zone (SEZ)-driven urbanization in Western Hyderabad, with a specific focus on the rapidly transforming corridor between Manikonda and Tellapur. Over the past three decades, the region has experienced intense development linked to the growth of HITEC City, the Nanakramguda Financial District, and surrounding IT infrastructure. While this expansion has generated substantial economic growth, it has also led to significant ecological disruption affecting the geological and hydrological systems of the Deccan Plateau. The study investigates two interconnected processes: the destruction of ancient geological formations, particularly the 2.5-billion-year-old granite landscapes of Khajaguda Hills, and the collapse of the historic Cheruvu chain-link tank system that historically regulated water flows across the plateau. Using geospatial analysis, environmental literature, policy review, and case study observations, the paper documents how large-scale urban development has altered natural drainage patterns, reduced lake storage capacity, and accelerated the loss of geological heritage. The research demonstrates that these transformations have created a paradoxical urban condition in which Western Hyderabad faces both increased flood risk and growing groundwater scarcity. The removal of rock formations, encroachment into lake Full Tank Levels (FTL), and expansion of impervious surfaces have collectively intensified runoff, reduced groundwater recharge, and amplified the urban heat island effect. The study also highlights governance challenges, including fragmented institutional responsibilities, gaps in geo-heritage protection legislation, and policy conflicts between SEZ development frameworks and environmental conservation. In response, the paper proposes a set of planning recommendations focused on integrated ecological infrastructure. These include the adoption of blue-green urban planning approaches, reform of Transferable Development Rights (TDR) policies to incentivize geological conservation, mandatory geological and hydrological impact assessments for major developments, and the creation of a comprehensive geological heritage inventory for Hyderabad. By framing geological formations and hydrological networks as essential urban infrastructure rather than expendable land resources, this research contributes to ongoing debates about sustainable urbanization in rapidly developing metropolitan regions. The findings provide insights relevant to planners, environmental policymakers, geographers, and urban researchers studying the ecological implications of technology-driven urban growth in India and comparable global contexts.