Municipal corporation faces Rs 40 crore penalty for unpaid water bills

Chhatrapati Sambhajinagar: The Chhatrapati Sambhajinagar Municipal Corporation (CSMC) is facing a penalty of Rs 40 crore for unpaid water bills for lifting water from the Jayakwadi Dam. The water resources department has imposed this penalty due to the non-payment of dues since 2016.

The dam supplies 130 to 135 MLD of water daily to quench the city's thirst, and the CSMC is responsible for paying the water bill every month. However, the corporation has neglected to do so for the past few years.

This issue arose after the termination of the parallel water scheme agreement in 2016. The company managing the scheme failed to pay the water bills during their operation. Subsequently, the CSMC took over the responsibility but also neglected to clear the dues.

The water resources department imposes a double penalty on overdue bills, resulting in a significant increase in the outstanding amount. This penalty is reportedly higher than the interest on property tax levied by the CSMC itself.

Despite attempts to resolve the issue, the CSMC's proposal for a new agreement with the water resources department was rejected due to the outstanding dues. The penalty amount has now been added to the original bill, inflating the total to Rs 40 crore.

Currently, the monthly water bill for the dam is around Rs 25 to 30 lakh. However, due to accumulated interest and penalties, the total outstanding amount has reached a staggering Rs 40 crore.

The CSMC has reportedly paid Rs 7.96 crore towards the dues in the past two and a half years. However, a significant portion of the outstanding amount remains unpaid.