With the clarification by the municipal administration and urban
development (MAUD) on a few issues raised by the Greater Hyderabad
Municipal Corporation (GHMC) relating to penalties on property tax, the
property tax collections are bound to swell and fill the coffers of
corporation through levying huge penalties on unauthorised and deviated
constructions.

In Greater Hyderabad limits, there are large
numbers of building owners who have unauthorisedly constructed
additional floors without permission and many deviated in construction
against the sanctioned plan. 

If GHMC finds unauthorised floors
over the permitted floor in a sanctioned plan, it would levy 100 per
cent penalty on the full structure (entire building). In case of
unauthorised floors with or without occupancy certificate, penalty will
be imposed as per the Act.

If the owner has raised further
structures unauthorisedly after issuing the occupancy certificate, the
MAUD clarified that in respect of unauthorised constructions raised
after obtaining the OC such portion of unauthorised construction should
be treated as total unauthorised construction at the rate of 100 per
cent of property tax.