MUNICIPAL ADMINISTRATION & URBAN DEVELOPMENT DEPARTMENT – Andhra Pradesh Municipalities (Regulation of Receipts and Expenditure) Rules, 1968 – Certain amendments – Orders - Issued.

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PART I EXTRAORDINARY

No.222 AMARAVATI, FRIDAY, MAY 1, 2026 G.101 NOTIFICATIONS BY GOVERNMENT

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GOVERNMENT OF ANDHRA PRADESH

ABSTRACT

MUNICIPAL ADMINISTRATION & URBAN DEVELOPMENT DEPARTMENT – Andhra Pradesh Municipalities (Regulation of Receipts and Expenditure) Rules, 1968 – Certain amendments – Orders - Issued.

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( G.O.Ms.No.92, MUNICIPAL ADMINISTRATION AND URBAN DEVELOPMENT (J1)

DEPARTMENT 01st May,2026)

NOTIFICATION

In exercise of the powers conferred under Section 326 of the Andhra Pradesh Municipalities Act, 1965 (Andhra Pradesh Act No.6 of 1965), the Governor of Andhra Pradesh hereby makes the following amendments to the Andhra Pradesh Municipalities (Regulation of Receipts and Expenditure) Rules, 1968 issued in G.O.Ms. No.686, Municipal Administration, Dt:30.07.1968 as amended subsequently.

AMENDMENTS

I. In the said rules, in rule 12, for sub-rule (1)(h) (2), the following shall be substituted, namely:-

" Manner of fixing the upset price: The upset price for lease of immovable properties for the first time or subsequent Auction, shall be fixed by the Municipal Council / Corporation in the following manner:

(b) Prevailing rent of such properties situated in the vicinity, in case of lease of immovable properties for the first time whichever is higher.

(c) In case of subsequent auction, the upset price shall be fixed either at the rent mentioned in clause (a) or (b) or rent at 7% above the earlier rent whichever is higher.

(d) The upset price to the first floor shop rooms shall be fixed 20% less on the ground floor shop rooms and for the floors above the first floor, it shall be fixed at 30% less than the ground floor shop rooms.

(e) The lease rent so fixed shall be revised every year at 7% above the earlier rent during the lease period."

II. In the said rules, in rule 12, for sub-rule (1)(h) (4), the following shall be

substituted, namely:-

"Renewal of lease of immovable properties: The Municipal Council/ Corporation may renew the lease of immovable properties for a period of three years at one time and with the prior sanction of the Government renew the lease for a period exceeding three years and not exceeding twenty-five years at a time without conducting public auction if the present lessee agrees to renew the lease in his/her favour on revision of the rent every year at 7% per annum above the earlier rent during the lease period.

Explanation:

For existing leases, rent at 7% shall be increased after completion of current lease period as per the agreement."

S.SURESH KUMAR

PRINCIPAL SECRETARY TO GOVERNMENT