CURE Act Sparks Property Tax Storm: Unauthorised Structures Face New Reality from Oct. 2

The Indian government's controversial CURE Act (Central Urban Real Estate Act) comes into force on October 2, ushering in a new era of property taxation and regulation. The law mandates a significant increase in property tax rates and explicitly prohibits the transfer of unauthorised structures, a move that could impact millions of property owners across urban India.

Under the new regime, property tax assessments will be revised upwards, with officials citing the need to fund urban infrastructure and streamline land records. Unauthorised constructions, which have proliferated in many cities, will no longer be eligible for sale, purchase, or transfer, effectively freezing such assets. The government argues that the Act will curb illegal development and boost municipal revenues, but critics warn of hardships for homeowners and potential legal challenges.

The Act's implementation from October 2 is expected to trigger widespread reactions, with opposition parties and homeowner associations planning protests. Real estate markets may see a short-term slowdown as buyers and sellers grapple with the new rules. The government has yet to announce any relief measures, and it remains to be seen how state governments will enforce the provisions, given that urban planning is a state subject. Incisor News will continue to monitor developments.