PART I EXTRAORDINARY

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 01^st 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:

(a)

Rent at 10% of the current market value of the property per annum i.e. both building

and land as per market value of the land and construction rates of the structures and

Registered No. HSE-49/2016

No.222

AMARAVATI, FRIDAY, MAY 1, 2026

G.101

NOTIFICATIONS BY GOVERNMENT

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buildings fixed by Registration Department under the Andhra Pradesh Revision of

Market Value Guidelines Rules, 1998 (or),

(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