Hyderabads Illegal Buildings Cross 2,000 as New Rules Could Make Violations Costlier
HYDERABAD, August 24, 2026: Hyderabad is facing a growing challenge of unauthorised construction, with around 2,000 illegal buildings identified across the core urban region and more than 1,000 complaints pending in the Cyberabad Municipal Corporation (CMC) area.
The problem includes unauthorised additional floors, construction without approvals, land encroachments, deviations from sanctioned plans and violations of mandatory setbacks.
Why Illegal Construction Is Becoming a Bigger Concern
The scale of unauthorised construction has raised concerns over urban planning, building safety and enforcement.
In Cyberabad, officials have received more than 1,000 complaints. Areas such as Kukatpally and Madhapur have emerged as major hotspots, particularly with hostels operating in densely built-up locations.
Officials have warned that such structures can pose risks to surrounding buildings when construction and occupancy norms are not followed.
Municipal Tribunal Still Not Operational
A dedicated municipal tribunal was proposed to speed up the disposal of cases related to unauthorised construction, but the mechanism has remained pending.
The proposed tribunal could provide a dedicated judicial platform for dealing with building violations and other municipal matters. The government is now considering a common tribunal for GHMC, Cyberabad Municipal Corporation and another municipal corporation, potentially through the proposed CURE Bill 2026.
New Bill Could Make Illegal Construction More Expensive
The draft CURE Bill 2026 proposes significantly higher penalties for unauthorised construction.
Under the proposal, an unauthorised building could attract a penalty equal to 300% of its property tax, compared with the existing 100% penalty.
For example, if a property's annual tax is Rs 10,000, the proposed penalty could take the total liability to Rs 40,000, including the normal tax.
The draft bill also proposes a 100% penalty for building deviations, such as constructing additional floors beyond the sanctioned plan.
What This Means for Hyderabad Property Owners
For homeowners, landlords and property buyers, the proposed changes make it even more important to verify whether a property has the required approvals and matches its sanctioned building plan.
A property with unauthorised floors or major deviations could face financial penalties and regulatory action. Buyers should therefore check sanctioned plans, building permissions and relevant municipal records before purchasing a property.
Grihik Angle
Hyderabad's expanding urban areas are seeing rapid construction, but unauthorised development can create risks for both property owners and buyers.
If the proposed CURE Bill becomes law and a common municipal tribunal is established, Hyderabad could see a more structured mechanism for dealing with building violations. At the same time, higher penalties could make compliance an increasingly important factor in property ownership and investment decisions.