Hyderabadis can expect life to become a little easier when dealing with local authorities. Whether it is property tax or building approvals, the process is set to become much simpler as the State government has replaced the nearly 70-year-old Greater Hyderabad Municipal Corporation Act with the Core Urban Region (Integrated Governance) Act, or CURE Act for short. The change makes sense, given that the GHMC Act was enacted when the city's population was just about 15 lakh. Today, it has grown to approximately 1.3 crore. Persistent problems such as traffic congestion, flooding, pollution, water shortages, and lake encroachment demand a new governance framework. This is precisely what CURE aims to achieve. It brings the Greater Hyderabad, Cyberabad and Malkajgiri municipal corporations under a common governance framework.
For residents, the most immediate changes relate to property tax assessments, building permissions and the delivery of civic services. Some residents are apprehensive that property taxes may increase. However, the change is more of a correction, so to speak, rather than an across-the-board hike. There is, therefore, no need to panic. Here, we break down exactly what the government hopes to achieve through CURE.
What changes for property owners? Will property tax increase?
The most important change is the shift from the existing Annual Rental Value (ARV)-based property tax assessment system to the Capital Value System (CVS). Under the new system, property tax will be linked to the guideline values of land and buildings notified by the Registration and Stamps Department, rather than their annual rental value.
The proposed annual tax rates range from 0.10% to 0.50% of the guideline value for residential properties and from 0.20% to 2% for non-residential properties. Until the respective municipal corporations formally notify the revised rates, interim rates of 0.15% for residential properties and 0.75% for non-residential properties will apply.
The new system has come into effect for newly constructed properties that have not yet been assessed for property tax. Existing properties, however, will shift to the CVS from the 2027-28 financial year, beginning April 1, 2027.
To prevent a sudden increase in the tax burden, the Act caps the annual increase during the transition at 10% over the previous year's tax.
For instance, if a property owner currently pays Rs 10,000 annually and the tax calculated under the new system works out to Rs 16,000, the first year's tax will be capped at Rs 11,000. It could rise to Rs 12,100 in the second year and increase by up to 10% annually thereafter until it reaches the revised tax amount.
The 10% ceiling does not mean that every property will automatically face a 10% increase every year. The actual increase will depend on the difference between the existing tax and the amount assessed under the new system.
The nominal annual property tax of Rs 101 will continue for eligible residential properties measuring up to 375 sq ft. The Act also provides for penalties of up to 300% of the property tax for unauthorised constructions. However, paying the penalty will not regularise an unauthorised building.
When will the new property tax system be implemented?
Although the CURE Act came into force on October 2, 2026, the transition for existing properties will begin only on April 1, 2027. Until then, existing properties will continue under the current assessment arrangements.
The new assessment will use guideline values fixed by the Registration and Stamps Department. The applicable rates will be determined by the respective municipal corporations within the ranges prescribed under the Act.
For owners of newly constructed properties that have not previously been assessed, the CVS is already applicable. An online self-assessment facility is also available through the municipal corporation websites and the My CURE App. The corporations will inspect and verify the details submitted by applicants.
Will building approvals become faster? What is deemed approval?
The CURE framework seeks to make building permissions more predictable by introducing statutory timelines for processing applications through the online BuildNow Telangana portal.
Residential buildings on plots measuring up to 500 sq m, with a building height of up to 10 metres, are subject to a standard processing timeline of 15 days. Larger residential projects and all non-residential projects have a processing timeline of 21 days.
The BuildNow portal already publishes these service timelines. It also specifies separate timelines for raising queries about deficiencies and for applicants to comply with development conditions.
The Act also provides for deemed approval if the competent municipal body or development authority fails to process a valid application within the prescribed period. This provision is intended to prevent building permission applications from remaining pending indefinitely.
However, deemed approval does not apply to all categories of buildings. Exclusions include construction in the buffer zones of waterbodies, high-rise buildings, and projects requiring No Objection Certificates (NOCs) from the Fire Services Department, the Airports Authority of India, and other competent agencies.
Applicants should therefore not assume that the expiry of the processing period automatically permits construction in every case. Applications must meet the applicable building regulations and the conditions governing deemed approval.
The transition also covers existing municipal services and pending applications. The government has stated that active services and pending applications, including those for building permissions, have been migrated to the new framework. Applicants should check the status of their pending applications through the BuildNow portal.
Will property tax, water and sewerage charges come in one bill?
The Act envisages a consolidated civic bill, known as CURE-1, combining property tax, water charges, sewerage charges and sanitation dues. It also provides for an Integrated Property Identity Code (IPIC) for every property, linking ownership details, property tax assessments, water connections and sewerage records through a common identification system.
The government has set a target of making the integrated system operational within 180 days. Once implemented, the common property ID is expected to reduce duplication of records and make it easier for residents to access different municipal services.
However, the CURE-1 digital platform should not be confused with the proposed consolidated bill. The Centre for Good Governance says the CURE-1 web application and mobile app were launched on June 7, 2026. Its first phase provides access to property tax and trade licence payments for the three municipal corporations, along with electricity bills, water bills and traffic e-challan payments.
This means a common digital platform is already available for several services, but integrating property records and introducing a single consolidated civic bill remain separate implementation tasks. Until the databases and billing arrangements are integrated, residents will continue to rely on the existing assessment and billing systems.
Will property mutation happen automatically after registration?
The Act provides for the automatic initiation of property mutation after a transaction is registered. At present, buyers generally have to approach municipal authorities separately to update ownership details in municipal records. Under the new framework, registration details are expected to be linked to municipal records, reducing the need for separate visits to municipal offices. The proposed Integrated Property Identity Code will also link ownership details with property tax, water and sewerage records.
However, the automatic mutation provision and the assignment of a common property ID should not be confused with the completion of the entire integration process. The extent to which the system is functioning across all three corporations remains to be established as implementation progresses.
Where should residents go if civic services fail?
The CURE Act seeks to improve coordination among the three municipal corporations and the various agencies responsible for roads, drainage, water supply, sewerage, electricity, public transport and other services.
However, the three municipal corporations will continue to look after local civic services. The new Apex Governance Council and Executive Committee are intended to coordinate planning and implementation across the wider region.
The CURE Executive Committee has already been constituted. Chaired by the Principal Secretary or Special Chief Secretary of the Municipal Administration and Urban Development Department, it includes the commissioners of the three municipal corporations and representatives from the police and district administration, Hyderabad Metropolitan Development Authority (HMDA), Hyderabad Metropolitan Water Supply and Sewerage Board (HMWSSB), Southern Power Distribution Company of Telangana Limited (TGSPDCL), Metro Rail, Telangana State Road Transport Corporation (TGSRTC) and Hyderabad Disaster Response and Asset Protection Agency (HYDRAA). They must meet at least once every three months to monitor projects, implement the Apex Council's directions, and resolve interdepartmental issues.
For residents, this means local complaints will still have to be taken up with the municipal corporation or the concerned service agency. Residents should use the designated grievance mechanisms, retain complaint reference numbers and follow up with the authorities if issues remain unresolved. The new coordination mechanism is expected to help resolve problems involving multiple departments, but it does not, by itself, guarantee that individual complaints will be addressed within a fixed period.
The Act also provides for a CURE Appellate Authority to hear appeals against specified orders passed by municipal commissioners and other designated authorities. This differs from a general-purpose Municipal Ombudsman, who can independently intervene in cases involving civic inaction, delays, or failure to provide services.
Who will be accountable for decisions affecting residents?
The CURE Act shifts Hyderabad's urban governance from a corporation-centric model to an integrated metropolitan framework. The Apex Governance Council, chaired by the Chief Minister, will set the broad policy direction and priorities for the region. At the same time, the Executive Committee will coordinate implementation among the different agencies.
The Act also provides for a CURE Smart Governance Centre to monitor civic services, infrastructure and emergencies across the region. Using technology, sensors, digital dashboards, and live data, the centre is intended to help officials identify disruptions and coordinate responses across multiple departments. Its effectiveness will depend on the availability of real-time information and the extent to which participating agencies share data and act on it.
However, citizen representation in this new structure remains important. The elected mayors and corporators are not included in the published composition of the Apex Council and Executive Committee. This raises questions about how local priorities will be represented when decisions affecting the three corporations are taken at the metropolitan level.
The changes to the roles and functions of Ward Committees and Area Sabhas also require attention. These bodies have traditionally provided a channel for residents to raise neighbourhood-level issues and communicate local development priorities.
What other changes will residents notice?
The Act provides for a CURE Disaster Management Authority to coordinate disaster prevention, preparedness, response and recovery across the region, with HYDRAA functioning as the disaster response agency.
It also provides for fire audits and certification for specified buildings, including high-rises, based on their risk profiles. Buildings posing an immediate threat to life can be sealed until identified deficiencies are rectified. Other safety provisions include CCTV surveillance in markets, transport areas and public spaces, as well as adequate lighting in parks, at bus stops and at transport hubs.
A CURE Traffic Management and Road Safety Authority will oversee traffic management and road safety. The framework also focuses on footpaths, pedestrian crossings, kerb ramps, street lighting and traffic signals, while providing for Safe School Zones around educational institutions.
A Utility Coordination Committee will coordinate road-cutting works by different departments to prevent newly laid roads from being dug up repeatedly for underground utility works.
The Act also strengthens provisions to protect lakes, nalas, parks, and open spaces. The Act prohibits the discharge of sewage and pollutants into water bodies and nalas, and illegal dumping of construction and demolition waste will attract penalties. HYDRAA has statutory backing to act against encroachments and dumping in lakes, nalas, and other public spaces.
Other provisions include a Gender Inclusion Cell to address the needs of women, transgender persons, persons with disabilities, children and senior citizens in urban planning.
A Food and Nutrition Committee will examine food safety and nutrition standards, including gaps in laboratory facilities and enforcement. A Heritage Committee will oversee the conservation of historic precincts, heritage buildings and protected areas.
The Act also provides for committees on climate action and labour welfare, as well as designated night economy zones to facilitate regulated commercial activity beyond conventional daytime hours.
What should residents expect now?
The CURE Act provides a common framework for coordinating the three municipal corporations and the agencies responsible for Hyderabad's urban infrastructure. For residents, its most direct implications will be felt in property tax assessments, building permissions, property records, civic billing and grievance redressal.
Some measures, including the CURE Executive Committee, the BuildNow processing timelines and the first phase of the CURE-1 digital platform, are already in place. The transition of existing properties to the Capital Value System will begin in April 2027, while the common property identification and consolidated billing arrangements are yet to be completed.
The real test of the CURE Act will be whether it translates into transparent property tax assessments, faster building approvals, better coordination among service agencies and the timely resolution of civic complaints. I