HYDERABAD: The state government has approved a One-Time Settlement (OTS) Scheme for the 2026-27 financial year to clear long-pending property tax dues on government properties across Greater Hyderabad, Cyberabad and Malkajgiri municipal corporations.
Under the scheme, the government will provide a 100% waiver on accumulated interest and penalties, subject to adjustment of the principal amount of Rs 1,686.39 crore by the Finance department within one year.
Officials said the OTS scheme is expected to help settle long-pending arrears, improve revenue realisation, reduce litigation and strengthen the financial position of GHMC, CMC and MMC.
The government also approved adjustment of pending water cess dues of Rs 2,739.15 crore payable by various government departments to the Hyderabad Metropolitan Water Supply and Sewerage Board (HMWSSB). In addition, dues amounting to Rs 2,416.31 crore towards subsidies and services provided by HMWSSB for double-bedroom houses and other schemes will be adjusted against loans of Rs 12,707.67 crore extended by the state government to the Water Board.
CURE Special Officer Jayesh Ranjan, who submitted the proposal, said after the trifurcation of the erstwhile GHMC into GHMC, CMC and MMC from April 1, a review through the CURE platform revealed substantial pending dues related to property tax arrears, water cess and reimbursements.
According to officials, the CURE region has 2,217 Property Tax Identification Numbers (PTINs) linked to state government properties and undertakings, with total collectable dues amounting to Rs 5,864.92 crore, including arrear tax, arrear interest and current tax. Under the OTS scheme, the collectable tax is Rs 1,686.39 crore.
Within GHMC limits, 1,157 PTINs account for dues of Rs 5,612.04 crore, while the OTS collectable amount stands at Rs 1,585.41 crore. In CMC limits, 267 PTINs account for Rs 52.75 crore dues, with Rs 24.87 crore collectable under OTS. In MMC limits, 393 PTINs account for Rs 200.13 crore dues, of which Rs 76.11 crore is collectable under the scheme.
Officials said HMWSSB is implementing large-scale water supply and sewerage infrastructure projects through HUDCO loans, HAM financing and government support. The expansion of jurisdiction to the 2,053 sq km CURE area has also increased operational and maintenance costs. The Water Board is currently awaiting dues from 36 state government departments.