Refund of Term-Deposit to prospective consumers who have not availed new service connection.

Departmental Circular (Com) No. 288 issued under PR-3/ 28106 dated 24-6-1977.

      The Board approved vide Resolution 567dated 18-7-1977 to introduce "Term Deposit" scheme for L.T. consumers. This was notified vide Circular quoted above. Accordingly the prospective L.T consumers have an option to pay the full cost of supply as "term deposit" for 10 years.

        In cases where an applicant has paid the amount of term deposit and who later on for some reason or the other is not willing to avail supply and requests for refund of the term deposit amount, the Board in supercession of its earlier Resolution 1361 dated 14-12-1978, vide Resolution No. 1602 dated 12-3-1979 has decided as follows-

(i)	In cases where no expenditure on any work has been incurred, the term deposit amount should be refunded.
(ii)	In case where some expenditure on the work has been incurred, the same, together with the cost of dismantling less credit for returned material should be retained and balance of term deposit should be refunded.
(iii)	However, as per our present rules, 10% of service connection charges should be recovered form such consumers as per the guidelines prescribed in the Circular No. 271 issued under PR-3/ 11994 dated 15-3-1976 regarding refund of Security Deposit and Service Connection charges paid by the consumer.
(iv)	Interest on the amount of term deposit payable to the applicant should be adjusted with retrospective effect in the event of premature repayment of the Term Deposit as per Reserve Bank's rules, which have been intimated by the Director of Finance Vide Circular No. AD/Loan/IES/78/20 34713 dated 3-8-1978.

          The Board further authorised the Zonal Chief Engineers in cosultation with Dy. C.A.0s. or A-0s. attached to the Zonal Offices, to decide such cases of refund of term deposit after following the above guidelines.

Sd/- Dy. Chief Engineer (RE & Com)