BSNL Fined Rs 10.5 Lakh By Dehradun Court Denied To Return Dealers Security Deposit Details

Bharat Sanchar Nigam Limited (BSNL) has been given a big blow by a lower court in Dehradun. The state-owned telecom company will have to pay Rs 10.5 lakh to its dealer for allegedly “wrongfully forfeiting the security deposit”. BSNL challenged the decision in a commercial court, where the order of the lower court was upheld by an additional district judge.

TOI’s Report According to, the lower court at Dehradun has clarified that BSNL was continuing to provide service to a customer even after she had stopped paying his bills. As per the court order, BSNL was at fault in continuing the services to the customer who had stopped paying.

The report states that in 2002, BSNL Ltd. entered into a contract with Tehri resident Pradeep Pokhriyal, under which, the company allotted a dealership to Pokhriyal for distribution and marketing of mobile services. Reportedly, for this two-year contract, the company had taken a security deposit of Rs five lakh from Pokhriyal.

In fact, according to the report, it so happened that during this time a mobile number was issued to a user named Surendra Ratwal, who had stopped paying the bill and the outstanding bill amount had reached Rs 4.16 lakh. Due to this, BSNL refused to give Pokhriyal a deposit of Rs 5 lakh after termination of his contract.

Pokhriyal approached the High Court for this. The High Court appointed a District Judge to settle the matter. the judge BSNL 10.5 lakh to pay Rs 10.5 lakh, following which the company challenged the decision in a commercial court, calling the decision illegal and against the “public policy of the country”.

The dealer, on the other hand, submitted that it was the duty of BSNL to verify the address of the customer before releasing the mobile phone connection. Not only this, the court later came to know that BSNL had also started ISD facility on a number whose bill was not being paid for a long time. The company also continued to provide its services on this number for the next 18 months.

Finally, after considering all the facts, the court dismissed BSNL’s petition.