The Telangana government has approved a one-time settlement (OTS) scheme to clear long-pending property tax arrears on government buildings across the newly formed urban local bodies in Hyderabad, while also settling pending water cess dues owed to the Hyderabad Metropolitan Water Supply and Sewerage Board (HMWSSB).

According to an order issued by the Metropolitan Area and Urban Development department, the scheme will provide a 100% waiver on accumulated interest and penalties on property tax arrears for government properties under the Greater Hyderabad Municipal Corporation, Cyberabad Municipal Corporation and Malkajgiri Municipal Corporation during the 2026–27 financial year.

Following the trifurcation of the erstwhile GHMC into GHMC, CMC and MMC from April 1, 2026, a review conducted through the CURE platform found substantial pending dues related to government properties and utility payments.

The total collectable property tax dues from 2,217 government-linked properties stood at ₹5,864.92 crore, including arrears, current tax and accumulated interest. Under the OTS scheme, the government will settle ₹1,686.39 crore, comprising principal arrears and current tax, while interest and penalties will be waived.

Of the total, GHMC accounts for the largest share with ₹5,612.04 crore in dues, followed by MMC at ₹200.13 crore and CMC at ₹52.75 crore.

The government also approved the settlement of pending water cess dues payable to the Hyderabad Metropolitan Water Supply and Sewerage Board. According to the order, dues from 36 State government departments amounting to ₹2,739.15 crore will be adjusted against government loans of ₹12,707.67 crore extended to HMWSSB. In addition, ₹2,416.31 crore towards subsidies and services, including those for double-bedroom housing schemes, will also be adjusted.