IHC upholds PTA’s order for Zong to reimburse over Rs2bn to customers
ISLAMABAD: The Islamabad High Court (IHC) has upheld the Pakistan Telecommunication Authority (PTA)’s order for Pakistan’s digital and telecommunication service provider ZONG to reimburse a whopping over Rs2 billion to the customers, deducted on account of service and other charges.
Justice Mian Gul Hassan Aurangzeb dismissed a petition filed by Zong against an order issued by the PTA, directing it to refund Rs2,028,038,584, (more than 2 billion or Rs28 million) collected from customers on account of service/maintenance/cards/operational fee charges from 26.04.2019 to 12.07.2019.
In its decision, the court observed that cellular mobile operators including ZONG had been charging Rs10 from customers each time they purchased and used a prepaid card valuing Rs100 as assistance/maintenance/administrative service charges.
It said that the Supreme Court of Pakistan, in its order, expressed that the service charges could not have been validly and legally imposed on the amounts loaded by users of mobile phone devices.
The IHC dismissed ZONG’S appeal against the PTA’s decision calling it not maintainable.
According to the court’s order, the PTA directed ZONG to provide complete details of service/maintenance charges recovered from 24.04.2019 onwards.
It was reported that ZONG had charged and collected Rs2,028,038,584 from its customers between 26.04.2019 and 12.07.2019 on account of service/maintenance/card/operational fee charges.
The PTA directed ZONG to refund the said amount to all its concerned subscribers in the form of a balance amount without any validity restriction.
On April 29, 2019, the PTA had asked ZONG to clarify its position.
It had also directed the appellant to refund to its customers Rs2,028,038,584 collected from customers between April 26, 2019 and July 12, 2019 on account of service and other charges.
However, ZONG later challenged the PTA’s order in the IHC, which the court dismissed, terming it not maintainable.
Copyright Business Recorder, 2024
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