Chandigarh MC’s compound surcharge move hikes water bill defaults to Rs 106cr

Chandigarh: The outstanding amount for those who haven't paid their water bills in Chandigarh is set to rise to Rs 106 crore, following the approval of a 10% compound surcharge by the general house of the municipal corporation.
"The surcharge will be imposed on those who do not pay the bill amount even after being given ample time, including after the first due date. Thus, the 10% surcharge will be applied in the second bill," sources said.
This measure aims to impose a strict financial penalty to recover the outstanding amount, which is a significant part of the civic body's revenue. Also, it has been observed that most of the unpaid bills are from commercial or government entities, making it crucial to see how the authority will recover this amount.
"As per the existing water supply bylaws, a penalty in the form of a surcharge is levied on consumers for delayed payments of their water bills for that period. This surcharge is added to the next bill for delayed payments. However, there is no provision for a compound surcharge on unpaid water bills, resulting in persistent defaults by some consumers due to non-payments in consecutive cycles," the MC said.
The MC approved the relevant clause, stipulating that any consumer who fails to pay the water charges, including arrears and surcharges, will be liable to pay a penalty of 10% of the total amount due. "Since the house has approved the agenda, the minutes will now be sent to the local government office of the UT for approval. Once approved, this new measure will be implemented with the necessary instructions," sources said.
Sources in the MC revealed that this move aims to ensure timely payment of water bills and boost revenue. According to records, water and property tax defaulters owe the MC approximately Rs 250 crore in arrears.