Under the scheme pending water and sewerage charges will also be recovered, besides settling pending house and property taxes.
The proposal for the scheme was moved by the Local Government Department and the Cabinet, chaired by Punjab Chief Minister Amarinder Singh, approved it, a spokesperson in the chief minister's office said.
Under the scheme, it was proposed that defaulters would be given a three-month window, from the date of notification of the scheme, to deposit their dues with a rebate of 10 per cent, he said.
The department will initiate action against those who do not pay their dues within six months of the OTS' notification, he said, adding action would include disconnection and recovery of arrears with interest and penalty.
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Likewise, the department has also initiated the OTS for regularisation of unauthorised water and sewerage connection at concessional penalty and rates, the spokesperson said.
It is estimated that about 15 to 20 per cent of water connections in all municipal towns of the state are unauthorised, he said.
Defaulters will be provided three months to deposit their dues with a rebate of 10 per cent and they can, thereafter, deposit their dues with normal interest during the next three months, the spokesperson said.
If they fail to avail any of these options, the department will initiate action against them, which would include sealing and sale of property as per the provisions of the law, he said.
The total arrears for house tax and property tax stood at Rs 306.84 crore as on June 30, 2017, the spokesperson said.
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