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Bsnl

(Querist) 18 September 2012 This query is : Resolved 
What are the specific statutory provisions available to BSNL to recover outstanding dues from their customers ?
ajay sethi (Expert) 18 September 2012
issue legal notice . disconnect coonection . file recovery suits
Raja (Querist) 18 September 2012
issue legal notice - OK
disconnect coonection - OK
file recovery suits - UNDER ANY SPECIFIC LAW
ajay sethi (Expert) 18 September 2012
civil procedure code.
ajay sethi (Expert) 18 September 2012
Ailing state-run telecom companies Bharat Sanchar Nigam Ltd (BSNL) and Mahanagar Telephone Nigam Ltd (MTNL) are yet to recover over Rs 5,000 crore from subscribers as dues for non-payment of bills.

For BSNL, which operates all over the country, barring Delhi and Mumbai, the amount is Rs 4,200-4,500 crore. According to a senior company official, BSNL is in the process of appointing recovery agents on a commission basis to bring back the money. MTNL, which offers services in Delhi and Mumbai, has already appointed agents to recover about Rs 800 crore, which has been pending since 2007.







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An MTNL official said, “The dues arise because of an individual subscriber buying two SIM cards or there is a change in address.”

BSNL’s losses for 2010-11 stood at Rs 6,000 crore, while MTNL incurred losses of about Rs 2,800 crore.

At present, both the companies have employees to recover the dues from subscribers. According to an MTNL official, the company now plans to outsource the work to private players to ensure the recovery more effectively.

When contacted, BSNL chairman and managing director R K Upadhyay said, “We are taking necessary steps to keep the dues as low as possible. All the circle heads have been told to recover the money.”

However, he did not divulge any figure for the outstanding amount.

In February, MTNL had floated a notice inviting applications for recovering the arreas. Recovery agents or firms will be paid commission on the basis of the amount recovered. The contract was for a year and might be extended to two years. The selected bidders would have to recover a fixed minimum amount of Rs 1 lakh a month, the application had said.

BSNL and MTNL have been losing revenues and market share steadily amid an intense price war in the telecom industry. MTNL has also been impacted by high payouts for pension and other retirement benefits, while a major chunk of BSNL’s revenues goes towards paying the salary for staff.

The two PSUs are also in the process of introducing a voluntary retirement scheme to lay off surplus employees. BSNL has an employee base of about 280,000, while MTNL has 45,000.

Till the end of August, MTNL has a GSM subscriber base of about 5.3 million in Delhi and Mumbai. BSNL’s GSM subscriber base in the same period stands at 59.19 million.
ajay sethi (Expert) 18 September 2012
Indore: Bharat Sanchar Nigam Limited (BSNL) is all set to sue 25,000 customers having outstanding dues worth Rs 18 crore in Indore district over last one decade.



Around Rs 11 crore is to be recovered for lease lines. Of this, around Rs 6 crore is due from private telecom players and remaining Rs 7 crore is due from customers who have used landline, WLL and cell phone services, said a senior BSNL official.



In financial year 2011-12 the company recovered Rs 42 crore out of the total `60 crore. Over 20,000 BSNL customers including hundreds of government connections are defaulters since 1990-95.



The old recoveries for the financial year 2010-11 were Rs 32.88 crore.



In the last fiscal, the BSNL, Indore, made several efforts for recovering dues. It set up a 30- member team which went around households asking defaulters for clearing dues.



The company is also pressuring the private telecom players for clearing old dues in connection with circuit (lease lines).



The Indore circle was positive about making Rs 111 crore collection in last fiscal year 2011-12 as against `101 crore for the financial year 2010-11.



BSNL general manager GC Pandey said that the company is devising a strategy to recover the dues on account of non-payment by defaulters.


Raja (Querist) 18 September 2012
But I think, a Certificate Case could be initiated under Revenue Recovery Act ?
Guest (Expert) 18 September 2012
Funny statement by GM BSNL, "company is devising a strategy!" What STRATEGY, when there is lack of planning, lack of training, lack of coordination between commerical, revenue and field units, lack of sincerity, lack of supervision and control over outsourced srvices, unchecked and uncontrolled database, late billing due to late data transfers, defective softwares, lacking customer services, and several other negative factors persisting in both the BSNL & MTNL organisations?

Company's line-staff is fully capable of making recovery, but they would prefer to hire recovery agents to siphon out huge funds by paying hefty recovery fee rather than shelling out paltry incentive to the field staff to help making recovery.


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