Deccan Chronicle      02.01.2011

GHMC to levy property tax on illegal structures

an. 1: The Greater Hyderabad Municipal Corporation (GHMC) is planning to levy property tax on buildings that have come up in an unauthorised manner on government, ceiling, assigned and notary lands. The corporation hopes to raise over Rs 50 crore by bringing such properties under its tax net.

Among the properties that are under the GHMC scanner are numerous buildings that have come up in Gurukul Trust Lands at Madhapur. GHMC officials point out that the civic body is providing all amenities including roads, street lights, garbage removal and other infrastructural facilities to the localities in which these illegal constructions were located.

However, a majority of the owners of these buildings are not paying property tax to the GHMC. “Owners of these buildings are using the civic amenities being extended by the GHMC,” said a senior official.

The GHMC decided to tax the buildings after some enterprising officials dug out a judgement of the Supreme Court which says that levying property tax does not confer any right or title on the land in question. The standing committee of the Greater Hyderabad Municipal Corporation has also approved the proposal to bring unauthorised constructions in government and ceiling lands under property tax net.

It asked officials to send a proposal to the government seeking permission to impose property tax on such buildings. The GHMC additional commissioner (finance and revenue), Mr Harikrishna, said the general body of the GHMC has approved the proposal. “We are writing to the government to allow us to levy and collect tax on these buildings,” he added.