GHMC to Seek A-G’s Advice on Taxing Illegal Buildings

Published: 30th December 2014 06:01 AM  |   Last Updated: 30th December 2014 06:01 AM   |  A+A-

HYDERABAD: On the instructions of chief minister K Chandrasekhar Rao, the Greater Hyderabad Municipal Corporation will take the advice of the advocate-general on levy and collection of property tax from the owners of unauthorised constructions.

Since 2006 the corporation has not been collecting property tax on houses which are ‘notarised’, unregistered or disputed properties. As per GHMC’s records, there are 1,05,175 such properties in the city. If these properties are assessed, it will yield a revenue of `37.59 crore to GHMC. The civic body has requested the state government to permit it to levy property tax on all such buildings except those in municipal parks, on road margins and Sikham lands.

The issue was brought to the notice of the chief minister at a meeting held three days ago where he directed the corporation officials to take the advice of the advocate-general on levying property tax on unauthorised constructions. Of the 1,05,175 unassessed properties and the likely revenue to be generated are Notarised Properties (58,417 houses, Rs 10.98 crore), Unregistered properties (45,038 houses, `26.30 crore and Disputed properties (1,720 houses, `30.40 lakh).

GHMC officials told Express that several buildings in GHMC limits were not assessed because they were built on government lands or illegally. The GHMC Act is clear that even these properties can be levied property tax but most officials are wary of acting as officials’ intentions were questioned by the vigilance and enforcement and ACB in some cases in the past. The GHMC is providing civic amenities like roads, storm water drains and street lights by spending huge sums of money for public health or under pressure from elected representatives in underdeveloped areas  where unauthorised constructions have mushroomed and the ownership was derived without valid documents.

The previous general body had recommended  levy of property tax on notarised documents and requested the government to issue appropriate orders to permit GHMC to levy and collect property tax on unauthorised buildings in government, private and ceiling lands with coverage of 2/3 constructed portion and above as per the existing provisions of GHMC Act.


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