Urban News

The Deccan Chronicle  07.12.2010

Hyderabad, Dec. 6: Cyber Towers in Hitec City, IT companies in Gachibowli and industrial areas of Katedan and Patancheru are within the limits of the Greater Hyderabad Municipal Corporation, yet the civic body does not have powers to collect property tax of buildings in these areas.

It is the Andhra Pradesh Industrial Infrastructure Corporation that is collecting property tax in Hitec City and 14 other industrial areas located in GHMC limits.

The APIIC transfers to GHMC only one-third of the tax collected in 14 industrial areas and 50 per cent of the total property tax on buildings in Hitec City and Gachibowli. The GHMC gets `10 crore per annum towards its share of taxes on these buildings from APIIC.

Corporation officials said that even building permission in these areas is given by APIIC.

The GHMC wants to take over control of at least 14 industrial areas that are currently under the Industrial Area Local Authorities (IALA), an arm of APIIC. The GHMC standing committee has passed a resolution to this effect.

The GHMC additional commissioner (finance/revenue), Mr S. Hari Krishna told this correspondent: “There are no rules or provisions in the Hyderabad Municipal Corporation Act to allow IALAs to give building permission and collect property tax. We have written to the Municipal Administration and Urban Development department to take over the powers from APIIC and transfer it to.”

The IALAs were formed in 1994 by APIIC for looking after land allotment and granting permission to industrial areas that were located in areas surrounding the city. With complaints from industrialists that they were facing problems in getting permissions from erstwhile municipalities and gram panchayats, the state government then empowered IALAs to grant building permission and collect property tax.

Officials said if IALAs and other local areas in Greater Hyderabad limits are transferred to GHMC, the civic body can raise nearly `100 crore in building fees and property tax per annum, and reinvest the same in the improvement and development of civic infrastructure in these areas.