PMC opts for 1% penalty on unpaid water bills over disconnection
The PMC supplies water to numerous city-based central and state government offices along with the Pune and Khadki cantonments and railways that also feature in the defaulters’ list
As many of the defaulters are government or semi-government establishments, the Pune Municipal Corporation (PMC) has opted to impose a one per cent penalty on unpaid water bills instead of disconnecting water connections.

The PMC supplies water to numerous city-based central and state government offices along with the Pune and Khadki cantonments and railways that also feature in the defaulters’ list. Despite the PMC having served notices to the defaulters in December 2023 asking them to pay the arrears else face water disconnection, the defaulters have failed to pay the arrears.
Among the defaulters, the Pune Cantonment Board (PCB) has the highest arrears at ₹53 crore followed by various central and state government departments. These offices, which primarily receive water from the municipal corporation, have accumulated significant debts, putting a financial strain on the city’s water supply infrastructure. The PMC provides drinking water to both central and state government offices, mainly through the Bund Garden and Pune Cantonment water supply divisions. Among these, 12 government departments owe approximately ₹109.99 crore in unpaid water bills. Additionally, entities such as the railway, postal department, BSNL, air force and archaeological department have also failed to pay their outstanding bills. Furthermore, there are 29 state government departments with dues amounting to ₹15.52 crore. Despite receiving essential services such as drinking water, these departments, including the public works department, health department, mental hospital, irrigation department and regional transport office (RTO) have neglected their financial responsibilities.
Nandkishor Jagtap, chief superintendent of the water supply department, said, “Even after the warning issued by the PMC, very few have paid their water taxes so far. Therefore, we took the decision to levy a penalty of one per cent per month on overdue water bills for offices failing to pay on time. This move came as a response to the increasing dues, which have reached alarming levels. We have experienced that defaulters resume water connections even after the disconnection action.”
One of the senior officials of the water supply department said, “While the PMC has the authority to disconnect the water supply to private establishments for non-payment of dues, there are challenges in taking action against government offices. In a previous incident, the municipal corporation disconnected water to the Aga Khan Palace due to outstanding dues, resulting in widespread controversy. Therefore, we took the decision to levy a one per cent penalty on unpaid water bills. We issue water bills every two months.”

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