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However, the judges also specified that cable operators couldn't
disconnect those consumers who refused to pay the new rates applicable
from 1 January 2003.
The division bench also held that it would hear the arguments of
the various affected parties - consumers, NGOs (non-government organisations),
MSOs (multi-system operators) and broadcasters on 4 April. "All
the individual petitions made by several affected parties have been
clubbed together as the future ruling would have a bearing on the
entire city," Chief Justice Thakkar said.
Starting off the proceedings, MSO InMumbai Networks' lawyer Janak
Dwarkadas informed the court that the MSOs were in a tricky situation
as the broadcasters were pressurising them to clear the dues irrespective
of whether the local cable operators had paid the MSOs or not. He
produced a letter from broadcaster Sony Entertainment Television
(SET) which had threatened to disconnect signals if InMumbai didn't
pay an outstanding amount of Rs 12.1 million till 15 March 2003.
"The MSO would have to make the payment in lieu of the ongoing World
Cup cricket irrespective of whether it receives the payments from
the cable operators within the stipulated deadline," he added.
"The voluntary statement of order given by the cable operator to
the court that they could offer consumers signals at any particular
rate is not binding on the MSO. Cable operators were kept in the
loop whenever the MSOs entered into an agreement with the broadcasters.
Cable operators should honour the existing commitments which they
had with the MSOs," Dwarkadas added.
Dwarkadas stated that the MSOs held the cable operators responsible
for withholding revenues collected from the consumers from the MSOs.
He mentioned that the MSOs didn't have the appropriate technology
to control the signals once they left the main control room. "Once
the signal travels to the local cable operators, the MSOs can't
prevent the defaulting cable operators and consumers from accessing
the signals," Dwarkadas added.
Speaking to indiantelevision.com after the ruling, InMumbai's lawyer
Dwarkadas said: "The division bench accepted our argument that we
don't have the technology to bypass the defaulting cable operators
and the consumers. The cable operators can decide what they should
charge the consumers but ensure that they pay the MSOs and the government
their dues for the services."
Seven Star's lawyer Majid Memon said: "Seven Star had taken the
lead in saying that they wouldn't disconnect any cable connections
of consumers who refused to pay the new rates applicable from 1
January 2003. We are happy that our stance has been vindicated and
extended to all the cable operators (belonging to various cable
associations) in other parts of the city."
Consumer Action Network president Abdi said: " We are happy that
the High Court has stopped arbitrary disconnections. We have received
nearly 5000 letters from consumers who have been victims of random
disconnections. We shall await the court's ruling on 4 April 2003."
BJP MP Kirit Somaiya was disappointed that the court held that status
quo should be maintained on the old rates as of 31 December 2002.
"These old monthly cable rates could be anything between Rs 200
to Rs 300. I am sure that we shall prove our case on 4 April 2003
and push for a monthly amount of Rs 150. We shall produce evidence
comprising of written statements by disgruntled consumers. We shall
also prove that cable operators haven't paid service tax, income
tax and entertainment tax to the government."
However, some of the members of the cable trade present say that
Somaiya is way off the mark when he mentions an amount of Rs 150
per month. "Our upgradation costs work out to Rs 40 per subscriber
and around Rs 800 per subscriber per annum. They expect us to pay
for the regular maintenance of the networks. The network wires get
damaged during kite flying competitions or other building maintenance
work," says a cable operator on condition of anonymity.
"Consumers and NGOs must remember that we are dealing in electronic
equipment. The lifespan of an amplifier or electronic components
required at the control room is limited. How can consumers expect
these equipment to last a lifetime? We have dished out money for
these spare parts, for salaries, office rents, electricity charges,
so on and so forth. After all, it is just another business and we
want to be profitable," says an MSO representative who doesn't wanted
to be quoted.
"Kiritbhai is talking about disclosing revenues to the excise and
income tax department. I wish to point out that the excise department
officials are extremely corrupt and they were the ones who urged
honest cable operators to avoid disclosing their real subscriber
numbers. Most of them made their money through bribes and have been
transferred to other departments. Now, the cable operators who bribed
them have been left in the lurch due to Kiritbhai's actions," says
another cable operator.
"The honest cable operator gets squeezed from all sides. Whenever
there is a rate hike, he has to go to consumers and demand more
money. If the consumers refuse to pay, his profit margins reduce.
The dishonest cable operator makes merry in all scenarios," says
a cable operator from South Mumbai.
A politician opines that the only law which can teach dishonest
cable operators a lesson is the Income Tax Act. "The revenue and
excise officials must instigate IT scrutiny on one or two major
defaulters. The onus of proving that the cable operator had lesser
number of subscribers must be placed on the operator. The defaulters
shouldn't be given amnesty and should be penalised so heavily that
all other cable operators would toe the line. Once CAS comes in,
everyone's true colours will be revealed!"
Among those present for the hearing were Bharatiya Janata Party
MP Kirit Somaiya, Consumer Action Network president Ahmad M Abdi,
Doordarshan (DD) Mumbai deputy director Yashpal Ramavat, Hathway
GM operations Rohinton Dadyburjor and one of the promoters of Seven
Star Nader Ali.
DD was represented by additional solicitor-general SB Jaisinghani;
MSOs Hathway, Seven Star and InMumbai were represented by their
lawyers Ravi Kadam, Majid Memon and Janak Dwarkadas respectively;
Mumbai Cable Operators Federation (MCOF) was represented by its
lawyer A M Saraogi.
It looks as if 14 July 2003 is a long way off. Today, everyone has
had their say. All eyes are now on Mumbai High Court's room number
46 where the hearing will take place on 4 April 2003.
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