New Municipal Act of Telangana and Its Advantages for Real Estate

New Municipal Act (2019) of Telangana and Its Advantages for Real Estate

The Telangana Government has passed a new municipal act at the state assembly on 19th June 2019. The Telangana Chief Minister Mr. K. Chandrasekhar Rao instructed the officials to formulate a new Urban Policy, Municipal Act, new Corporations Act, new Greater Hyderabad Municipal Corporation (GHMC) Act, and Hyderabad Metro Development Authority (HMDA) in Telangana state. The proposed act includes major policy decisions, demolition of illegal constructions without notice, self-certification of property tax and a high penalty for misusing the facility.

Let us know in detail about the new proposed Municipal Act in Telangana State with the below points.

Why Do We Need A New Municipal Act?

The new Telangana Government has made many infrastructure developments in Hyderabad and increased the districts to 33 in the state. Earlier there were 1.2 lakhs illegal constructions noticed in the city, so with the new policies, the GHMC and HMDA are striving to achieve transparency in constructions. The new act aims to eliminate corruption at all levels. If any persons try to cheat the authority with fake measurements of lands, they will be fined heavily. The new Municipal Act will help civic bodies develop and check irregularities.

Key Points of the New Municipal Act

  • Earlier, there were six municipal corporations in the state, and now the number has increased to 13 with the implementation of seven new municipal corporations in the areas include Badungpet, Bandlaguda, Peerzadiguda, Jawaharnagar, Meerpet, Boduppal and Nizampet.
  • A total of 10% green budget is given from the municipal budget to improve plantation, and the ward members are responsible to see the survival of these plants.
  • The Chairperson, Commissioner and ward members check the particular municipalities and ensure to provide sanitation, hygiene, effective garbage disposal, greenery, maintenance of roads and drainage.
  • The state has given more power to the District Collectors; as they can cancel any resolution passed by a civic body and can even suspend chairpersons, and hold control over Urban Local Bodies (ULBs). The ministers cannot stay the orders given by the Collectors.
  • The builder has to upload construction progress reports in the prescribed site so the investors can know the detailed information of the project. If the builder fails to furnish the correct information, they have to pay a high amount of penalty.
  • All under the supervision of the district collectors will check the authenticity of the claims made by the landlords.
  • The individual who have the plots less than 500 sq.mts. can get self-certification for paying property tax online.
  • The Government would undertake random audits and any individual found deviating from the plan given to the government would be fined heavily.
  • The individual can construct a house on a plot of less than 75 square meters without applying for permission from the municipality. 
  • Such beneficiaries have to pay a house tax of Rs 100 per year and can register their property with a municipality at a nominal charge of Rs 1.00 to get the civic facilities.

Upcoming Infrastructure Developments

The new Act also limited the powers of the SEC, which were claimed by many to have violated the spirit of the Constitution. The Governor also opposed the powers conferred on collectors to remove elected representatives from municipal bodies if 85% of trees and plants in local nurseries are not protected. The new law was introduced at the State Assembly Special Session on 18 July and approved on the following day. Chief Minister of the Department of Municipal Administration K Chandrasekhar Rao had declared this a model legislation in the country since many changes in the administration of the local municipal councils were carried out.

  • To strengthen the local bodies, the Telangana government would spend Rs 7000 cores per year for developing villages.
  • To promote awareness of the new Panchayati Raj Act, the government will carry the Panchayati Raj conferences in all states.
  • In the proposed conferences, the local bodies should discuss themselves and take the responsibility to use these allocated funds to improve infrastructure in villages.
  • To promote transparency in the system 100 flying squads will undertake an unexpected inspection of the villages.  If they found any misuse of allocated funds, the authorities have been asked to take stern action against them.

New Municipal Act Advantages for Real Estate

This municipal act also allowed every metropolitan local authority to have a kindergarten and the elected representatives were responsible for protecting the facilities. The collector will delete this representative if the survival rate of plants is less than 85 percent. The chairman or the mayors will ensure the nursery's maintenance and production. A flying team can be formed for regular inspections. Reports claimed that the amendment could abolish this provision.

  • The new act standardizes and promotes transparency in the realty sector.
  • Improve quality construction with convenient amenities.
  • Ensure efficient service delivery within stipulated time-lines and address the issues and grievances of the public.

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By: Shailaja & Govi