Mayor Nandu Satam said there shall be an additional burden of Rs 7.21 crore per annum on the state exchequer due to fulfilment of demands of the civic staff who were threatening to go on mass casual leave on December 10.

Satam added their pending arrears worth Rs 19.5 crore will be paid soon, as per the decision taken in the MiC meeting today.

Around 4,000 civic officers had earlier threatened to curtail health and water supply services in the city if their demands weren't met.

Brihanmumbai Municipal Engineers Union (BMEU) general secretary and president advocate Prakash Devdas had said: ``The administration settled this issue with regard to 1,36,000 employees of grades four and five long ago, but has dragged its feet for a long time in finalising revision of grades for us.''