Officials said that the board needs at least Rs 2,000 to dig up lanes and by-lanes to disconnect one illegal line and then repave the roads again.

Because of paucity of funds, the board is allowing the illegal water connections to stay on though it is resulting in the loss of hundreds of crores of rupees to the exchequer.

The minimum water charges per year for the 30,000-odd connections work out to Rs 3 crore. In addition to this, the one-time charges for these illegal connections would have worked out to Rs 50 crore.

Further, there are long-standing defaulters who are enjoying water supply but not paying bills. The water board has a long-list of defaulters including government departments, sick industries and citizens, who have collectively accumulated arrears of nearly Rs 300 crore to be paid as bills.

There have also been complaints that people with illegal connections have been selling water at a premium to the needy.

The water board executive director, Mr Ashok Reddy, said a voluntary disclosure scheme had been offered as a one-time opportunity for consumers to regularise their illegal connections. “The scheme is valid from July 15 to September 14 and those with 15, 20 and 25 mm size connections are eligible for it,” said Mr Reddy.

Under the scheme, the water board will collect one-time connection charges and water charges for one year for the regularisation of the connection. It has warned that those failing to avail the scheme will face penalties after September 14.