India, May 14 -- The Maharashtra government has decided to divert the Goods and Services Tax (GST) grant, provided to municipal corporations, of Pune Municipal Corporation (PMC) to cover the arrears due to water resources department.

With the water resources department informing the government that PMC has an outstanding of Rs.187 crore, the latter faces a financial burden if the state goes ahead with its plan.

PMC receives around Rs.180 crore GST grant every month from the state government.

The state on May 8 issued orders to civic bodies to claim water bill dues from GST grant. It has ordered PMC to submit details about undisputed arrears of water bills.

However, PMC has denied that it has to pay any water bill dues to the water res...