ISLAMABAD – Telecom giant Zong has lost its appeal, as Islamabad High Court ordered the company to refund Rs2 Billion to affected customers.
The apex court of the country’s federal capital upheld the Pakistan Telecommunication Authority’s (PTA) ruling, which required telecom operators to return charges collected for service, maintenance, and operational fees between April 26, 2019, and July 12, 2019.
The case stemmed from the telecom industry’s malpractice of imposing a Rs 10 service fee on every recharge of Rs 100 by card. In the court verdict, IHC judge Justice Mian Gul Hassan Aurangzeb mentioned a Supreme Court ruling that declared such charges on prepaid mobile cards to be illegal.
SC issued an interim order invalidating the service charges on prepaid cards, which was later extended to post-paid users in March 2018, amid plethora of complaints about excessive charges.
Previously, telecom operators assured Court that they would stop charging such fees but Zong, with 49 million customers, contended that it had not waived its right to collect these fees. As the company failed to comply with the PTA’s instructions, a notice was issued and non-cooperation led to PTA ordering a refund to all affected customers.
The company moved to court and now lost appeal, reinforcing the PTA’s position and mandating unconditional refunds for the affected customers.
Islamabad High Court ruling is seen as a key step towards ensuring transparency and fairness in Pakistan’s telecom sector and protecting consumers from unjustified charges.
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