To boost the revenues of Urban Local Authorities (ULBs), the Municipal Administration Department has planned to collect property taxes from unauthorized government structures, endowments, and even land areas without a title.
Government to Impose Heavy Fine on Illegal Structures
Apart from GHMC Municipalities and Municipal Corporations have been informed about collecting a penalty of 100 percent on all illegal properties in Hyderabad. It means that illicit owners will have to pay twice the property tax rate specified. The owners are notified by special notice, and they will not be granted any right of ownership of the land.
As per the Telangana Municipalities (levy of property tax with a penalty for unauthorized building structure) Rules 2016, constant penalties to be levied on illegal structures from 25 to 100 percent. The rules made clear that when a structure varies from the plan sanctioned (up to 10% infringement), the government will collect 25% property tax as penalties. When it is greater than 10%, the penalty is 50% on usual taxes and 100% on full non-authorized structures.
In accordance with the regulations, the town planning wings of each ULB would have to send a monthly report on unauthorized buildings with the date of construction, the owners and developer name, and the design of the building.
In recent years, GHMC has collected property taxes on many illegitimate structures. Nonetheless, they have avoided illegally built structures on government lands, endowments, and Waqf lands because of concerns that owners might claim title and property rights.
However, the implementation of the government's new plan for collecting penalties on unlawful structures would help in the regularisation of all unauthorized planned properties in Hyderabad.
By: Shailaja K