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Delhi Approves Full Waiver of Late Fees on Domestic and Government Water Bills, Cuts Interest to 2%

The move seeks to unwind inflated arrears driven by a 5% compounding surcharge that accounts for 91% of dues.

Overview

  • Starting next month, consumers who clear principal dues by January 31, 2026 will get a 100% waiver on late payment surcharge, with a 70% waiver available through March 31, 2026.
  • The relief applies to domestic users and government establishments, while a separate decision for commercial consumers is under consideration and will not offer a full waiver.
  • The Delhi Jal Board says 29 lakh consumers stand to benefit, with total pending water bills at ₹87,589 crore, including ₹80,463 crore in surcharge and ₹7,125 crore in principal.
  • The board permanently reduced compounding interest on pending bills from 5% to 2% per billing cycle and will run facilitation camps to help residents calculate and settle dues.
  • Regularisation fees for illegal connections have been cut to ₹1,000 for domestic and ₹5,000 for non-domestic users until March 31, 2026, alongside plans to expand licensed installers to about 1,000 and link water-bill clearance to property registration.