Infosys Tech fined for 'misuse of power'

Infosys Technologies Ltd has been slapped with a fine of Rs 7.79 lakh (Rs 779,000) by the Bangalore Electricity Supply Company for 'misuse of power' at its guest houses in the city.

Bescom vigilance chief B N S Reddy told rediff.com on Saturday that an offence has been registered against the Bangalore-based global IT major for violating the tariff regulation order, under section 42:02 of the Supply & Distribution Code 2001, by paying residential charges, which is lower (one-third) than the rate applicable to guest houses that fall in the commercial category.

"Infosys has about 60 duplex apartments (Adarsha Gardens) in the posh Jayanagar suburb in south Bangalore. These are being utilized by the company as guest houses over the last two years for their transit employees or guests, who stay from weeks to months, time to time," he said.

"Investigations conducted during our vigilance rounds early this month have found that Infosys has been paying power tariff (LT2) applicable to residential houses though the apartments were being used as guest houses, for which commercial rate (LT3) applies," Reddy stated.

Taking an average reading of the monthly consumption by these guest houses for the last six months, Bescom has served a notice to Infosys to pay up the difference (Rs 7.79 lakh) and regularise the connections under the commercial category.

"The power misuse is to the tune of 81,833 units, and the amount payable for the last six months is Rs 779,379. The company has been directed to pay about Rs 64,000 per month to make up the difference under LT3 category," Reddy disclosed.

In a written response, the company said its officials were in discussions with Bescom on the matter. "We believe we are paying the appropriate tariff for our apartments in Adarsh Gardens," the statement added.

Infosys' officials, however, declined to comment on the reported offence or confirm the fine amount to be paid to the utility service provider (Bescom).

Bescom vigilance squads, located in 11 police stations across the city, consist of electricity engineers and an escort police force. They carry out surprise inspections on residential, commercial and industrial users of power to check misuse and book offenders with hefty fines, including penalties with retrospective effect.

"Verification by our engineers at Adarsha Gardens have revealed that families were not staying in any of the 60 apartments belonging to Infosys.

On inquiry, wardens of these guest houses disclosed that bachelors or individuals in 2-3 batches stay there from weeks to months," Reddy asserted.

Asked whether this was an isolated case of booking offence against a reputed company, Reddy said leading corporates such as Hindustan Levers and Reliance were also found guilty of similar offences last year.

They were also treated in accordance with the law to pay up the fines and regularise the connections," Reddy added.

It may be recalled that the Golden Palms Resorts of Bollywood actor-cum-producer Sanjay Khan, located on the outskirts of the city, was also found guilty of misusing electricity during its construction period in the recent past.

Not only an offence was booked against the resort, but also hefty dues were recovered for non-payment of energy charges that were not even metered.