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The Telangana Core Urban Region (Integrated Governance) Bill, 2026 (CURE Bill) was passed by the Assembly on September 12, Saturday. The Bill replaces the Greater Hyderabad Municipal Corporation (GHMC) Act, 1955, and establishes a unified governance framework for Hyderabad’s Core Urban Region (CURE), which currently includes three municipal corporations — the Greater Hyderabad Municipal Corporation, Cyberabad Municipal Corporation, and Malkajgiri Municipal Corporation.
A draft of the CURE Bill was released for public consultation earlier on July 5. The Bill was passed with an amendment that reduces the maximum proposed annual increase in property tax to 10% from the 20% hike proposed in the draft.
One of the biggest changes under the CURE Bill is the proposed shift in how property tax is assessed. The existing Annual Rental Value (ARV) system will be replaced by a Capital Value System (CVS), under which property tax will be linked to the government's market value of the property — the value used for registration purposes.
Since these market values are generally much higher than the rental values that have remained largely unchanged for years, the shift to CVS is expected to considerably increase the property tax payable by many owners. The Bill says the revised tax will be introduced gradually for existing buildings, so the immediate financial burden can be reduced. The maximum annual hike has now been capped at 10%, with the tax expected to increase gradually until the CVS is fully adopted.
Once the CVS is implemented, residential buildings will be taxed at 0.15% of their capital value, while non-residential buildings will be taxed at 0.75%.
The Bharatiya Janata Party (BJP) opposed the Bill in the Assembly, while All India Majlis-e-Ittehadul Muslimeen (AIMIM) floor leader Akbaruddin Owaisi asked the Speaker to refer it to a select committee. Both the BJP and AIMIM raised concerns that the new system could lead to steep increases in property taxes. They also expressed concerns that the powers of CURE Apex Governance Council, headed by the Chief Minister, could supersede those of the Mayor and other elected municipal representatives.
Industries and IT Minister D Sridhar Babu said the property tax hikes would not be a burden on poor and middle-income sections, and that sizable hikes would mainly be seen among wealthy property owners. He also said that the apex council would only act as an advisory body and wouldn’t take away the powers of the Mayor or corporators.
Sridhar Babu said that more than 4,000 suggestions were received after the draft Bill was opened up for consultation, and 70 changes were made before it was introduced in the Assembly.
The government has said the GHMC Act of 1955 had many obsolete and outdated provisions, and was designed to cater to a population of just 15 lakh, which has now crossed 1.3 crore. The CURE Bill, however, retains some provisions of the GHMC Act relating to municipal corporations, including borrowing powers and animal management.
