Property tax spirals, no transfer of unauthorized structures; The CURE Act goes into effect on October 2nd
Under the new legislation, property tax will move to a capital value system where the tax is calculated as a percentage of the reference value of the property’s registration. | Photo credit: Representative photo
The Greater Hyderabad Municipal Corporation (GHMC) Act, 1955, which governed the GHMC and the areas under its jurisdiction, has become history with effect from October 2.
It was replaced by the Core Urban Region (Integrated Governance) Act, 2026, or simply the CURE Act, which provides a governance framework for the three municipal corporations in the CURE area: GHMC, Malkajgiri Municipal Corporation and Cyberabad Municipal Corporation (CMC).
Officials said the law was published in the Telangana State Gazette and formalized the transition.
One of the main changes introduced by the CURE Act concerns the calculation of property tax. As per the GHMC Act, the tax was calculated based on the annual rental value of the property. Under the new legislation, this will move to a capital value system where the tax will be calculated as a percentage of the reference value of the property’s registration. The change is part of the urban reforms being pushed by the Union government.
The shift is expected to increase property taxes throughout the CURE area, with some properties possibly doubling in tax. The impact could be particularly pronounced in the CMC, where property values are significantly higher than in other areas.
The CURE Act also removes the role of elected councils in deciding property tax increases. Under the earlier GHMC Act, elected representatives had a say in such revisions. Under the new system, any increase in registration guidelines by the government will automatically increase property tax.
The CURE bill proposes a minimum of 0.1% and a maximum of 0.5% tax on the capital value of residential property and a minimum of 0.2% and a maximum of 2% on the capital value of commercial property.
New real estate appraisals will immediately go into the revised costing system. The new method can reportedly be extended to properties that have already been valued from the next financial year.
Another important provision prohibits the transfer of real estate with unauthorized structures. It is not yet clear whether the restriction will also apply to existing properties. The law also prohibits the provision of electricity, water and sewage connections to properties without a building permit and provides for disciplinary action against officials who violate this requirement.
The power to grant permission for public advertisement will also be taken away from the Municipal Corporations and vested in the Advertising Regulation Committee. The respective commissioners retain the power to remove advertisements.
The new legislation significantly limits the powers of the mayor and elected members of councils. It provides for an Apex Governance Council chaired by the Chief Minister and an Executive Committee chaired by the Principal Secretary for Metropolitan Area and Urban Development. It also establishes an appeals body, CURE, where citizens can file appeals.
Published – 02 Oct 2026 20:31 IST