Islamabad High Court Orders ZONG to Refund Over Rs 2 Billion to Customers

In a major decision, the Islamabad High Court (IHC) has ruled in favor of thousands of ZONG customers, directing the telecom operator to refund over Rs2 billion in charges slapped on them between April 2019 and July 2019. The order was passed in response to a ruling by the Supreme Court that deemed the service charges imposed by cellular mobile operators, including ZONG, to be invalid.

The issue dates back to 2019 when ZONG started charging its customers Rs10 as a "service/maintenance/administrative fee" for every Rs100 loaded on their prepaid cards. This decision was met with controversy, with many users complaining about the additional charges. The matter caught the attention of the Pakistan Telecommunication Authority (PTA), which directed ZONG to provide details of the charges collected from customers. Following this, the telecom operator was also ordered to refund the amount to concerned subscribers without any validity restriction. In 2023, the Islamabad High Court upheld the PTA's order, ruling that the charges levied by ZONG were not legally imposed on the amounts loaded by mobile users.

The court observed that ZONG had indeed charged its customers extra for every prepaid card purchased, citing the charges as a "service fee". However, the IHC rejected the telecom operator's claim, stating that such charges were not mandated by any law or parliamentary act. Consequently, the court ordered ZONG to provide full details of the charges and refund the entire amount of Rs2,028,038,584 to affected subscribers in the form of a balance with no validity restrictions.

This decision marks a significant victory for thousands of ZONG customers who were affected by the excessive charges imposed by the telecom operator. The Pakistan Telecommunication Authority (PTA) had earlier directed ZONG to provide details of the charges collected from customers and to refund the amount to concerned subscribers without any validity restriction. With the Islamabad High Court upholding this order, ZONG is now ordered to refund the entire amount to its customers, bringing an end to a protracted ordeal.

The Islamabad High Court's ruling is a key development in the ongoing pursuit of fairness and accountability in the telecom industry. The decision highlights the importance of regulatory oversight and the need for telecom operators to adhere strictly to the rules and regulations governing their operations. As ZONG begins the process of refunding the entire amount to its customers, it remains to be seen how this development will impact the telecom landscape in Pakistan.