An amendment of the Hyderabad Municipal Corporation Act 1955 has been proposed by the Greater Hyderabad Municipal Corporation (GHMC). 200% additional property tax is planned to be levied on unauthorized buildings in the city. The AP Lokayukta directed this proposal enabling the implementation of the New Building Rules (GO 86).
Only 20 percent additional property tax is collected from the illegal building owners as of now, according to the sub-section 3 of Section 200 of HMC Act 1955. However, the Municipal Administration and Urban Development (MA&UD) issued GO 86 in 2006 which can allow the corporation to levy additional 200% property tax from such unauthorized building owners. The amendment was being implementation by the GHMC from the past few months. Though notices had been sent to the owners of illegal buildings and also to those of the buildings lacking occupancy certificates, the corporators are still demanding withdrawal of the amendment.
Source: Times of India