The United Federation of Residents Welfare Associations (U-FERWAS) has strongly endorsed this representation.

The core issue is that the properties in the original Hyderabad area are taxed based on Annual Rental Value (ARV) under the Greater Hyderabad Municipal Corporation (GHMC) Act, 1955. In contrast, residents of merged municipalities such as Narsingi, Gachibowli, Tellapur, and Miyapur are taxed under the more punitive Capital Value (CV) system.

Sitaram Dhulipala, Founding Chairman of The Citizens Council, wrote in a detailed representation to the Principal Secretary of the Municipal Administration & Urban Development (MA&UD) Department, "Once merger or reorganisation takes effect, the governing Act must apply uniformly."

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Their argument is grounded in existing law. Sitaram Dhulipala cites Sections 212 and 199 of the GHMC Act, 1955, which require taxation based on Rateable Value (ARV) and mandate uniformity. They argue that no legal basis exists for a separate Capital Value system within the same jurisdiction.

More critically, the letter invokes Article 14 of the Constitution of India, which guarantees equality before the law. "The present system violates Article 14, as it creates an unreasonable classification based on pre-merger geographical boundaries, without any rational nexus to the objective of unified urban governance," said Sitaram Dhulipala in the representation.

The practical effects are being felt in households and communities. Residents of merged areas face significant financial strain. UFERWAS reports that the Capital Value method has increased property taxes by two to four times for apartment owners in these zones. Residents note that the total additional burden exceeds Rs 200 crore annually, with no corresponding improvement in civic services.

Community organisations have rallied in support. Shortly after the Citizen Council representation became public, UFERWAS issued a strong endorsement. They expressed full support for all four demands.

UFERWAS has also gone a step further in its advocacy. The federation also added a demand for a penalty clause. UFERWAS said, "Any officer continuing CV assessment after 30 days of G.O. shall be personally liable under Section 217 of the IPC. Law must have teeth."

The federation has committed to several actions, forming a joint delegation with The Citizens Council to meet the MA&UD Principal Secretary, circulating the representation to 30,000 RWAs, and seeking 10,000 digital endorsements to the Chief Minister's Office by May 5, 2026. If the government does not act within 30 days, they will join as a co-petitioner in a Public Interest Litigation (PIL) before the Telangana High Court. They also plan to publish an MLA Scorecard to identify legislators who support ARV uniformity and those who remain silent. They note that 12 lakh voters are monitoring the issue.

The Citizens Council and UFERWAS have jointly demanded the immediate adoption of the ARV system for all properties within CMC limits, the withdrawal of all Capital Value-based assessments in merged areas, the adjustment of excess tax collected under the CV system against future liabilities, and the issuance of clear Government Orders to ensure uniform implementation of statutory provisions.

For residents of merged municipalities, the issue is fundamentally one of trust. The representation notes, "Merged municipalities joined the GHMC on the promise of 'One City, One Law.' Dual taxation amounts to a breach of legitimate expectation."