HYDERABAD: The Core Urban Region (Integrated Governance) Act, 2026, which seeks to establish a new framework for urban governance in Greater Hyderabad’s Core Urban Region (CURE), will come into force with the issuance of a Gazette notification on October 2, according to official sources.
The Capital Value System (CVS) for property tax will apply immediately to newly constructed properties that have not yet been assessed. For existing properties, the new system is expected to be implemented from the next financial year, 2027-28, beginning April 1, 2027.
The Telangana Legislative Assembly passed the CURE Bill on September 12, replacing the 70-year-old Greater Hyderabad Municipal Corporation (GHMC) Act, 1955. CURE covers 2,053 sq km within the Outer Ring Road (ORR) limits across Hyderabad, Rangareddy and Medchal-Malkajgiri districts. The area has been reconstituted into three municipal corporations — GHMC, Cyberabad Municipal Corporation (CMC) and Malkajgiri Municipal Corporation (MMC). The Act comprises five Parts, 43 Chapters, 319 Sections and nine Schedules.
The earlier GHMC Act was framed for a city with a population of around 10 to 15 lakh, with civic functions largely centred on drains, roads, markets, conservancy and epidemic control. The population of the area now covered by CURE has grown more than 12-fold to nearly 1.30 crore, about a third of Telangana’s population.
The Act provides for coordinated governance among the three corporations through a CURE Apex Governance Council and an Executive Committee.
It also provides for specialised mechanisms for traffic and disaster management, environment, heritage and food safety.
A single-window digital portal and common billing system are among the proposed measures. The legislation also provides for action against unauthorised constructions, protection of lakes and nalas, coordination of roads and utilities, stormwater management and climate action.
The CURE Act replaces the existing Annual Rental Value (ARV) system with the Capital Value System (CVS), under which property tax will be based on the capital value of a property. However, the increase in tax during the transition will be capped at 10% a year.