Telangana To Clear Its Property Tax, Water Cess Dues Under OTS

Hyderabad: The finance department on Wednesday issued a Budget Release Order (BRO) for ₹1,686.39 crore to implement a One Time Settlement (OTS) scheme for state government properties and its undertakings in Greater Hyderabad Municipal Corporation, Cyberabad Municipal Corporation and Malkajgiri Municipal Corporation for 2026-27.

The state government has permitted settlement of property tax arrears under the scheme, with 100 per cent waiver of accumulated interest and penalties, to be cleared within one year. The scheme is applicable only to state government properties and undertakings, and excludes Central government and private properties.

Officials said there are 2,217 Property Tax Identification Numbers (PTINs) registered under state government properties across the three municipal corporations.

Under the mechanism, municipal corporations will collect pending arrears and adjust the remaining dues against services. For instance, in cases such as dues payable by the Sports Authority of Telangana, part payments can be adjusted against utilisation of facilities instead of rental payments.

The Budget Estimates (BE) 2026–27 allocations under the scheme include ₹1,585.41 crore for GHMC, ₹24.87 crore for CMC and ₹76.11 crore for MMC.

The OTS will also address pending water cess dues payable to the Hyderabad Metropolitan Water Supply and Sewerage Board by 36 State government departments. The dues, including interest, stand at ₹2,739.15 crore, while adjustments amounting to ₹2,416.31 crore are pending towards subsidies and services provided by the board, including for double-bedroom housing schemes.