Delhi Govt announces waiver on late payment surcharge for water bills

Delhi Water Minister Parvesh Verma on Friday announced the Delhi Jal Board’s (DJB) approval of a comprehensive scheme to waive Late Payment Surcharge (LPSC) on pending domestic and government water bills.

The decision was taken at a meeting of the DJB chaired by Minister Verma. He clarified that the decision regarding the non-domestic category is yet to be taken.

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The move aims to provide relief to Delhi households and strengthen the financial health of the DJB, with waivers of up to 100 per cent available until March 31, 2026.

The initiative is expected to directly benefit consumers burdened by inflated bills due to compounding interest, while also enabling DJB to recover long-pending dues.

The waiver scheme will come into effect next month and remain operational until March 31, 2026. Notably, the waiver applies only to surcharges, not to the principal amount.

Of the total outstanding dues of ₹87,589 crore, ₹80,463 crore—about 91 per cent—comprises LPSC, largely driven by the earlier high compounding interest rates.

“This is the first and final scheme on LPSC waiver,” Verma stated.

Explaining the reform, the minister said, “For years, Delhiites have been receiving inflated water bills, sometimes running into lakhs, not because of water consumption but because of compounding interest at 5 per cent per month. We have taken a historic step to end this injustice. By reducing the compounding rate to 2 per cent and waiving up to 100 per cent surcharge, we are ensuring fairness, transparency, and relief to the people.”

Previously, DJB levied 5 per cent compounding interest per billing cycle, which meant a bill of ₹100 could escalate to ₹178. Under the new regime, with the rate reduced to 2 per cent, the same bill will rise only to ₹130.

To ensure maximum participation, DJB will organize awareness and facilitation camps across colonies, where teams will help consumers calculate pending dues, guide them on availing the waiver, and support them in clearing outstanding amounts.

“This is the first and final scheme of its kind. We urge citizens to come forward and settle their dues while this opportunity lasts. After March 31, 2026, there will be no such scheme,” Verma emphasized.

In another move to strengthen compliance, the government has decided that clearance of water bills will be mandatory for property registration.

The DJB has also approved measures to legalize lakhs of unauthorized water connections. For domestic connections, the regularization fee has been slashed from about ₹26,000 to ₹1,000.

In the non-domestic category, charges have been reduced from about ₹61,000 to ₹5,000. This scheme will also remain open until March 31, 2026.

“Our government is committed to providing every household with legal access to clean water. By drastically lowering the regularization fee, we are encouraging people to come forward and obtain legal connections without fear or hesitation,” Verma said.