Validity of Bank Guarantee to be furnished as Security Deposit in DNHPDCL

Validity of Bank Guarantee to be furnished as Security Deposit in DNHPDCL
Monday, December 28, 2015
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Dear all,

As you are aware that, DNHPDCL was accepting the Security Deposit in form of Cash, DD, FD only. As number of our industries who are bulk consumers were also compelled to pay the Security Deposit in above form only. Due to this huge amount from working capital was getting blocked in the Security Deposit.

So your association SIMA approached Hon'ble JERC, with request to accept Security Deposit in form of Bank Guarantee also. Accordingly Hon'ble JERC directed DNHPDCL  to accept Security Deposit of average 2 months bill amount, in form of Bank Guarantee also. And in Supply Code also along with other mode of payment of Security Deposit, the mode of payment in form of Bank Guarantee was also included.

Though DNHPDCL started accepting Bank Guarantee, but was insisting for validity of Bank Guarantee for 24 months and in additional validity was insisted for 6 months as a claim period.

Aggrieved by the approach of DNHPDCL, your association SIMA filed a complaint before Consumer Grievances Redressal Forum, Dadra & Nagar Haveli. The said complaint was filed by undersigned Narendra Trivedi i.e. Secretary of SIMA. Our said complaint wasremanded to CGRF, Daman for its disposal.

We are please to inform you that, CGRF Daman has passed an order on 18.12.2015 in the matter as under

"The DNHPDCL is directed not to ask the members of SIMA to furnish Bank Guarantee having any claim period. DNHPDCL is further directed to remain alert and issue notice to consumers about renewal of their Bank Guarantee well in advance as stipulated in JERC Suplly Code Regulation No. 11 of 2010."

So accordingly members of SIMA have to furnish the Bank Guarantee to DNHPDCL without any claim period.

The detail order of CGRF Daman is enclosed herewith for your information and necessary action.

Thanking you,
With regards,

For Silvassa Industries & Manufacturers Association

Narendra Trivedi

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