Key Takeaways from the Telangana Municipalities Act, 2019

Introduction

The Telangana Municipalities Act, 2019[1] (“Act”) was notified on October 9, 2019 in the Telangana Gazette inter alia with an object to (i) make the administration in Urban Local Bodies more transparent, time bound and accountable, (ii) meet the emerging scenarios which require new orientation in legal frame work, (iii) encourage greenery, and (iv) meet the growing needs of the public.

The Act repeals the (a) Telangana Municipalities Act, 1965 and (b) Telangana Municipal Corporations Act, 1994, and provides that municipalities and municipal corporations constituted under the aforesaid repealed acts shall be deemed to be municipal councils and municipal corporations constituted under the Act (other than the Greater Hyderabad Municipal Corporation). The new municipal corporations formed in the State of Telangana are Badangpet, Bandlaguda Jagir, Meerpet, Boduppal, Peerzadiguda, Jawaharnagar, and Nizampet. As per the provisions of the Act there are total 128 municipalities and 12 municipal Corporations.

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While the Act deals with efficient discharge of duties, functions, responsibilities, and powers of the municipal authorities, this article summarizes some of the key takeaways from the Act. Key Takeaways of the Act:

1. Applicability: The Act applies to all municipal councils and municipal corporations in the State of Telangana as set out in Schedule I and Schedule II of the Act excluding Greater Hyderabad Municipal Corporation (constituted as per the provisions of the Greater Hyderabad Municipal Corporation Act, 1955).
2. Powers of District Collector: The Act empowers the District Collector (i) to give directions to the municipalities to enforce implementation of the Act and execution of resolutions thereunder, (ii) to suo-moto or on representation suspend any chairperson / vice chairperson / member of a municipality for wilful default in performing their duties as per the provisions of the Act, (iii) issue directions to the Chairperson for proper working of the municipalities, and (iv) suspend resolution, order, licence, permission or the act, as the case may be, and report to the Government accordingly[2].
3. Exemption of Property Tax[3]: For any residential building having ground / ground plus one floor constructed in an area of up to 75 square yards, a nominal amount of Rs. 100 per annum shall be paid towards property tax.
4. Self-Assessment[4]: The owner of a newly constructed / reconstructed building, which is not assessed, can submit an online self-certification[5] and ensure that the property is assessed and accordingly pay the taxes to the concerned municipality. The onus of providing accurate information lies on the owner. The Act provides for penal provisions imposing specific percentage of the property tax as penalty which is applicable to the buildings constructed or reconstructed unauthorizedly until such unauthorized constructions are demolished or regularized.
5. No Due Certificate[6]: In regard to the vacant lands which are not used either for agricultural purposes, and are not occupied by, or adjacent and appurtenant to buildings, the property tax shall be levied at the time of construction or registration as one-time payment as per the applicable rates prescribed by the Government of Telangana. Prior to any construction activity on the vacant land, the owner is required to obtain no due certificate with respect to the payment of tax on the vacant land.
6. No Ownership Certificates: Municipal commissioners of municipalities and corporations of all the urban local bodies in the State of Telangana are directed to not issue ownership certificates and valuation certificates.
7. Occupancy Certificate[7]:

• (i) For a building comprising of ground or ground plus one floor constructed on land measuring 75 square yards (63 square meters), obtaining occupancy certificate is not required under the provisions of the Act[8].
• (ii) For (a) non-high rise buildings constructed in plots above 200 square meters and less than 500 square meters, and (b) high rise buildings constructed in plots above 500 square meters, occupancy certificate will be issued online, based on the self-certification submitted by the owner / builder in the form prescribed and attested by licensed technical personnel stating that the building has been duly constructed as per the sanctioned plan and strictly following the rule and regulations.

Based on the self-certification, occupancy certificate shall be issued, and mortgage shall be released within 15 days from the date of receipt of such application. To ensure compliance with the self-certification process, authenticity of the self-declaration lies on the owner, applicant and licensed technical personnel and false declaration, if any, attracts punishment including imprisonment up to 3 years and penalty.

1. Green Action Plan: The Act provides for constitution of Green Cell by earmarking 10% of the funds in the annual budget for plantation and development of nurseries and species in the municipality. The Act further imposes the responsibility on the ward member and the officers appointed thereunder so as to ensure 85% survival of such plants.

1. Development of Layout[9]:

• An application for layout is processed through the self-certification system in accordance with the layout rules, and as notified in the Master Plan or Detailed Planning Scheme or Local Area Plan, in the manner prescribed;
• The applicant shall be communicated the approved tentative layout plan within a period of 21 days from the date of application so as to complete the infrastructure and amenities and other works within a period of 2 years from the date of approval of the tentative layout plan;
• Upon completion of layout, the owner or developer shall submit online application along with self-certification duly attested by the licensed technical personnel declaring that the layout has been developed as per norms and also register all the roads and open spaces in the layout in favor of the concerned municipality;
• Thereafter, the municipal commissioner shall release the final approved layout and area mortgaged within prescribed time period;
• The developer or owner who undertakes unauthorized development of land shall be punished with imprisonment up to 3 years or fine up to 25% of value of land in question.
• The developer or occupier of all unapproved / unauthorized layouts as on date of commencement of this Act, shall apply within a year for regularization and carry the requisite developments within time frame prescribed.

1. Building Permissions[10]:

• Exemption from building permission: No permission required for plot size up to 75 square yards and construction of ground floor or plus one floor. The applicant has to just register online for Rs. 1. There is no need for occupancy or completion certificate.
• Self-Certification: Building permission for residential building on plot area up to 500 square meters and height up to 10 meters shall be processed by an application on online based Self Certification System. Instant online approval shall be issued upon completion of the requisite process and furnishing the required information.
• Single Window System: The development of commercial buildings, high rise buildings, group development schemes, group housing, apartment complexes, multiplexes, non-residential buildings, and other construction on plots above 500 square meters and height above 10 meters which required multiple no objection certificates, will require only 1 application form through web based online system.
• Deemed Approval: Applications for building permissions accompanied by valid and required documents shall be sanctioned within 21 days in the manner prescribed. If no order is issued within such prescribed period, then approval will be deemed to have been issued subject to revocation by the concerned authorities.

1. Demolition of unauthorized construction[11]: The Act empowers the Government or commissioner as the case may be, to take up demolition without issuance of any notice if (i) construction or reconstruction is without valid permission, (ii) not in accordance with the Master Plan or Detailed Town Planning Scheme or Local Area Plan, and (iii) breach of any provisions of the Act such as submitting misrepresentation or false statements in the self-certification process, in respect of the unlawfully executed work and later, the costs are recovered from the owner.

A public interest litigation[12] has been filed before the High Court for the Sate of Telangana challenging the provisions of the Section 178 (2) of the Act that the demolition of the unauthorized constructions / building without issuing notices to the concerned stakeholders, are against principles of natural justice. The said case is pending before the said High Court.

1. Directions to Registering Authority: The Registering Authority shall not register (i) new layout / sub division unless it is approved by the competent authority as per the provisions of the Act or provision of a proof evidencing the application under Land Regularization Scheme, and (ii) building or structure or part of the building without production of sanctioned plan approved by the municipality.
2. Establishment of Municipal Building Tribunal: The Act provides for establishment of municipal building tribunals to hear appeals and adjudicate offences relating to contraventions of Section 172 to Section 193 of the Act relating to building regulations and land development. Such tribunals have the same powers as vested in the civil courts and no court will have jurisdiction upon such matters.

Conclusion

The Act stipulates that municipalities and municipal corporations shall strive for adoption of e-governance system for providing services to citizens on anytime anywhere basis for better, speedy, accountable and transparent administration. The Act paves the way for reforming and improving the efficiency of the existing systems in provision of municipal services and also constitution of green cell for setting up of more green spaces. The promulgation of this Act has led to a debate for amending Greater Hyderabad Municipal Corporation Act, 1955 on the same lines as that of the Act, so as to ensure efficiency and efficacy in providing services to citizens within the jurisdiction of Greater Hyderabad Municipal Corporation.

The views and opinions expressed in this article belong solely to the author and do not reflect the position of TLH, Advocates & Solicitors.

[1] Act No. 11 of 2019

[2] Section 66, Section 74, Section 80 of the Act [

3] Section 92(4) of the Act

[4] Section 94 of the Act

[5] As per the provisions of the Act: Self Certification means an official statement that a person makes about himself, especially while applying for municipal services.

[6] Section 97 of the Act

[7] Section 174 and Section 175 of the Act

[8] Section 174 of the Act

[9] Section 172 of the Municipalities Act, 2019

[10] Section 174 of the Municipalities Act, 2019

[11] Section 178(2) of the Municipalities Act, 2019. A Public Interest Litigation is before the High Court for the State of Telangana challenging Sec 178 (2) of the Telangana Municipalities Act, 2019 as it is against the principles of natural justice, which is pending.

[12]WIP (PIL) 189 of 2019