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.