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The Legal Affair

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The Legal Affair

Let's talk Law

Karnataka High Court Questions BESCOM’s Delay in Implementing UPI Payment System Amid Digital Push

Karnataka High Court Questions BESCOM’s Delay in Implementing UPI Payment System Amid Digital Push

Introduction

In a recent development, the Karnataka High Court addressed the issue of online payment facilities at the Bangalore Electricity Supply Company Limited (BESCOM). The Court’s intervention followed a petition filed by Seethalakshmi, who sought a directive for BESCOM to provide Unified Payments Interface (UPI) and online payment options, as well as a prepayment meter, in compliance with the Electricity Act, 2003. On July 26, the Court directed BESCOM to file an affidavit explaining the delay in implementing these digital payment facilities.

BESCOM’s Managing Director, Mahantesh Bilagi, submitted an affidavit stating that the delay was due to the ongoing upgrade from the RAPDRP (Restructured Accelerated Power Development and Reforms Programme) Scheme to the IPDS (Integrated Power Development Scheme). The upgrade, involving both software and hardware, was completed in March 2024 and stabilized by April 2024. However, BESCOM indicated that online payment facilities for non-fast track services would be introduced as part of future phases of the IPDS Scheme, expected within six to eight months.

Arguments of Both Sides:

Arguments from BESCOM:

BESCOM’s defense, articulated through the affidavit, highlighted that the integration of online payment facilities is a part of a broader scheme upgrade from RAPDRP to IPDS. The affidavit explained that Phase 1 of this upgrade had been completed and stabilized, but the full range of online payment features for non-fast track services would not be available until subsequent phases of the IPDS Scheme are implemented.

BESCOM’s General Manager of the IT Department noted that introducing scanner systems for QR code payments at counters would require a tender process, further extending the timeline. This response underlined the logistical and procedural challenges BESCOM faces in rapidly deploying new technology across its network.

In its objections to the petition, BESCOM argued that the petitioner, Seethalakshmi, had not fulfilled her payment obligations and had filed multiple applications for additional load without settling previous dues. BESCOM claimed that Seethalakshmi’s consumption had been zero for the past year, and her petitions were based on unresolved issues regarding payment and load requirements.

Arguments from the Petitioner:

Advocate Anusha, representing Seethalakshmi, contended that BESCOM’s delay in implementing online payment facilities was unreasonable, especially given the current technological advancements and digital adoption by businesses. She argued that BESCOM’s failure to provide UPI and online payment options was a violation of the KERC (Karnataka Electricity Regulatory Commission) Regulations and the broader push for digital transactions by the government.

Anusha also emphasized the urgency of resolving the issue of the prepayment meter, which was part of Seethalakshmi’s request under Section 47 (5) of the Electricity Act, 2003. The petitioner sought a court directive to ensure BESCOM complied with the regulations and provided the necessary digital payment options promptly.

Court’s Judgment:

The single judge bench, led by Justice N S Sanjay Gowda, expressed dissatisfaction with BESCOM’s delay in providing online payment facilities. The Court’s remarks indicated frustration with the slow adoption of technology, comparing it to the rapid digitalization seen in other sectors. Justice Gowda highlighted that the facility for digital payments should be implemented more promptly, reflecting the Court’s stance on modernizing services and improving customer convenience.

The Court was critical of BESCOM’s timeline for the implementation of online payments, questioning why temporary solutions could not be adopted in the interim. The judges’ comments underscored a broader expectation for public utility services to embrace digital transformation swiftly.

Despite the critical remarks, the Court allowed time for the petitioner to file a reply to BESCOM’s objections. The matter was scheduled for further hearing on August 30, 2024. The Court’s direction to BESCOM to expedite the introduction of online payment facilities was aimed at addressing customer grievances and ensuring compliance with regulatory standards.