Hyderabad: Telangana government approved a one-time settlement (OTS) plan to clear pending property tax dues of government buildings amid concerns over the growing GHMC debt burden.
Officials said the Greater Hyderabad Municipal Corporation gradually shifted from a cash-rich civic body to a debt-driven corporation over the past decade. Until 2013, GHMC reportedly maintained fixed deposits of nearly Rs 1,000 crore.
After the formation of Telangana, funds were diverted to other departments, which weakened the corporation’s financial position. Officials said GHMC later depended on overdrafts and borrowings to execute infrastructure projects, including flyovers.
According to officials, GHMC borrowed nearly Rs 6,000 crore for infrastructure works. The outstanding liability currently stood at Rs 4,717 crore.
Recent reports suggested that the state government could take over GHMC loans. However, government sources clarified that Telangana was unwilling to absorb the liabilities because it could impact the state’s borrowing limits.
Instead, the Cabinet approved the OTS proposal to help civic bodies recover pending property tax dues from government offices.
GHMC debt burden linked to pending tax arrears
Officials said pending property tax dues related to government buildings in GHMC, CMC and MMC areas under CORE limits reached Rs 6,375 crore. Out of this, arrears linked to the 2025-26 financial year stood at Rs 5,864 crore.
Through the OTS facility, the government expected civic bodies to recover nearly Rs 1,686 crore from pending dues.
Authorities stated that total property tax arrears across GHMC, CMC and MMC areas stood at Rs 14,686.6 crore through 28.80 lakh assessments. Private properties accounted for Rs 8,734 crore of the pending amount.
Despite the arrears, officials fixed a collection target of Rs 2,762 crore. By March 31, 2026, civic bodies collected Rs 2,558.80 crore.
Officials also said the early bird scheme introduced last month generated Rs 1,211 crore in collections. Among the three corporations, CMC recorded the highest collections at Rs 510 crore, followed by GHMC with Rs 441 crore and MMC with Rs 260 crore.
