Telecom Company Zong Ordered to Return Rs2 Billion to Pakistani Users

ISLAMABAD: The Islamabad High Court (IHC) has dismissed an appeal by CM Pak Limited, operating as Zong, challenging the Pakistan Telecommunication Authority’s (PTA) directive to refund more than Rs. 2 billion to its customers. The amount was collected as service and maintenance charges between April 26, 2019, and July 12, 2019.

A single judge from the Islamabad High Court (IHC), Justice Miangul Hassan Aurangzeb, has written an 8-page order about the challenge that was made against the PTA’s August 2019 order.

Customers were billed Rs2,028,038,584/-for service, maintenance, card, and operational fees from April 26, 2019, to July 12, 2019, and the PTA ordered the telecom operator to return the money on August 30, 2019.

Every time a consumer bought and used a prepaid card worth Rs100, cellular mobile operators like the firm would deduct Rs10.

Supreme Court’s Role in the Case

On May 3, 2018, the Supreme Court took notice on its own that some taxes and other fees included in topping up or charging prepaid cards were too high and not fair.

The Supreme Court said its initial determination in an interlocutory ruling dated June 11, 2018, that the service charges could not have been lawfully and validly applied to the amounts purchased by mobile phone customers.

The Supreme Court then issued an order on October 16, 2018, amending its previous ruling such that “the same relief is also extended to the postpaid consumers of the cellular companies.” This amendment allowed the earlier order to continue in effect.

As of July 13, 2018, the appellant claimed that the 10% administrative and service fee it had been charging had been dropped as a result of the aforementioned decisions.

In its order dated March 27, 2019, the Supreme Court noted that cellular mobile providers had ceased charging for their services. The Supreme Court decided the suo motu case in a brief order on April 24, 2019.

However, some cell phone companies, like the appellant’s, resumed charging after the case was settled. The company argued in its appeal that cellular mobile operators were able to collect maintenance and service charges without any obstacles due to the vacation of all interim orders.

The PTA requested clarification from the appellant on April 29, 2019.

PTA’s Refund Order

In a subsequent Islamabad High Court challenge, the Zong challenged the PTA order. However, the appeal was rejected by the IHC because it could not be sustained further.