CURE Act Takes Effect, Hyderabad Property Tax Could Double

Property tax spirals, no transfer of unauthorised structures; CURE Act comes into force from Oct. 2

The Greater Hyderabad Municipal Corporation (GHMC) Act, 1955, has ceased to govern the GHMC and the areas under its jurisdiction with effect from October 2. It has been replaced by the Core Urban Region (Integrated Governance) Act, 2026, or the CURE Act.

The new legislation provides the governance framework for three municipal corporations in the Core Urban Region: the GHMC, the Malkajgiri Municipal Corporation and the Cyberabad Municipal Corporation (CMC). Officials said the Act had been published in the Telangana State Gazette, formalising the transition.

Property tax to be linked to registration value

The most significant change for property owners is the shift in the basis for calculating property tax. Under the earlier GHMC Act, the tax was calculated using a property’s Annual Rental Value.

The CURE Act replaces that method with the Capital Value System. Under the new system, tax will be calculated as a percentage of the property’s registration guideline value.

The change is part of the urban reforms being pushed by the Union government. The shift is expected to increase property tax across the CURE area, and tax on some properties is likely to double.

The impact could be particularly pronounced in the Cyberabad Municipal Corporation, where property values are significantly higher than in other areas. This makes the new calculation method especially important for properties falling within the CMC’s jurisdiction.

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.

Guideline value increases to affect tax

Under the new system, any increase in registration guideline values by the government will automatically raise property tax. The CURE Bill proposes a minimum tax of 0.1% and a maximum of 0.5% on the capital value of a residential property.

For commercial properties, the proposed minimum tax is 0.2% and the maximum is 2% of the capital value. New property assessments will immediately come under the revised calculation system.

The new method may reportedly also be extended to properties that have already been assessed from the next financial year. The provision would therefore cover both newly assessed properties and, potentially, properties assessed earlier, although the extension is described as a possibility in the source.

Restrictions on unauthorised constructions

Another significant provision prohibits the transfer of properties with unauthorised constructions. It is not yet clear whether this restriction will apply to existing properties as well.

The Act also bars the provision of electricity, water and sewerage connections to properties without an occupancy certificate. Officials who violate this requirement may face disciplinary action under the new legislation.

The provision links access to these civic connections with the availability of an occupancy certificate. The Act, however, does not clarify in the source how the restriction on property transfers will apply to existing properties.

Advertisement powers shifted

The power to grant permission for public advertisements will be taken away from the municipal corporations. That authority will instead vest in an Advertisements Regulatory Committee.

The respective Commissioners will retain the authority to remove advertisements. The new arrangement therefore separates the power to approve public advertisements from the authority to remove them.

Reduced role for elected representatives

The new legislation vastly curbs the powers of the Mayor and elected members of the municipal corporations. It provides for an Apex Governance Council chaired by the Chief Minister.

It also establishes an Executive Committee chaired by the Principal Secretary, Metropolitan Area and Urban Development. These provisions create new governance bodies alongside the framework for the three municipal corporations.

The Act further establishes a CURE Appellate Authority where citizens can file appeals. The authority provides a formal channel for appeals under the new governance system.

Source: The Hindu