In accordance with a Supreme Court order, the Maharashtra State Electricity Distribution Company (MAHADISCOM) will refund ₹800 crore to two lakh consumers for taking additional charges while installing new electricity connections. Maharashtra State Electricity Consumers Organisation (MSECO) has given the State-run body nine months to begin proceedings to repay the amount.
A Government Order in 2006 had struck down the practice of levying extra charges such as Service Connection Charge, Outright Contribution Charge on consumers seeking new power connections. The MSECO approached the Maharashtra State Electricity Commission in 2007 when MAHADISCOM continued to demand the extra charges. When the commission directed MAHADISCOM to refund the money, it appealed against the order in the Supreme Court. Following 10 years of legal battle, the court dismissed the appeal.
Pratap Hogade, convenor, MSECO, said, “Charging extra money was wrong. Now, MAHADISCOM has to pay ₹800 crore to the consumers. I feel the compensation amount should have been increased to ₹1,000 crore as MAHADISCOM continued to wrongfully demand the charges while the case was in court. We want the consumers to receive the refund immediately.”
Mr. Hogade said consumers were charged amounts ranging between ₹700 and ₹2.5 lakh for installing meters for residential and industrial purposes. In addition, ₹15,000 to ₹25,000 were charged for services such as wiring and erecting poles. He said, “The consumers were not aware that they were being wrongfully charged. Only a few of them raised the issue with the commission.”