Thursday, 10 July 2014

CDRC fines Torrent Power with 50 lakhs

Posted By: Unknown - 7/10/2014 12:32:00 pm

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The Consumer Disputes Redressal Cell (CDRC) of Gujarat has imposed a fine of Rs 50 lakh on the Torrent Power Ltd for alleged illegal recovery of a hefty amount from a user by cutting off electric supply. Torrent Power Ltd is private electricity discom (distribution company) supplying electricity to consumers in Ahmedabad and Surat cities.

"It has been proved that the company (Torrent Power Ltd) threatened to cut the power supply of a consumer. Later, it was cut to recover a hefty amount of Rs 78,000. This is only a tip of the iceberg and other such incidents would have occurred," the CDRC order said. "Under such circumstances, the company is directed to submit a fine of Rs 50 lakh to the Consumer Welfare Fund within two months," the order said.

The CDRC quorum comprising judicial member M T Unadkat and member Nandini Thaker acted upon the appeal of Torrent Power in which they challenged the Surat district Consumer Forum's judgement in which the company was asked to reimburse Rs 78,000 to a consumer.



A Surat-based travel agent Rajendra Sharma had moved the District Consumers' Forum alleging that Torrent Power recovered Rs 78,000 for allegedly damaging cable wires and in addition to that the company also cut power supply until the hefty amount was paid. The company had alleged that Sharma had dug the road by JCB machine and while doing that power-cables were damaged, which resulted in power cut in Puna -Kumbharia road of the city.

However, Sharma had tried to convince the company that his business has nothing to do with road-digging and he was asked to pay Rs 78,000 for the alleged damage he made. When he did not pay the amount, Torrent Power first threatened to cut and later cut the electricity supply of his travel agency's office after that he was imposed to pay Rs. 78,000. The CDRC has mentioned in the order that the recovery of the said amount was done without any basis or any supportive evidence. "As per the norms of the Electricity Act, the company was bound to give a notice to its consumer 15 days before cutting the power supply," the order said. The CDRC found that the company has failed miserably in giving service and committed a serious error while adopting a unreasonable business policy.

source : PTI

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