If the Village is registered as a 'Juristic Entity' then they can be taken to Court, and in some cases the house can not be sold until arrears are paid.
If the Village provide water to each house from a common village tank (as in the earlier years of moobaans), then water can be cut off to individual houses, but as another poster said, if the water and electric is provided through meters from the government, then it is illegal to touch those meters, even if the Village is Juristic.
Yes rubbish collection could be stopped for those houses, but in the end it affects other houses also with smells, rats etc, so not a great solution.
Also legally a resident can not be stopped from entering the village if they own a home. Many villages try this tactic with non payers but it leads to police visits and sometimes other nasty circumstances.
It is conundrum for many villages.