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Mumbai: Reliance Energy may snap power to 12,000 homes in Chembur's Siddharth Colony

Sources said Siddharth Colony residents stopped payment of bills since 2005.

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At least of 12,000 people residing at Chembur's Siddharth Colony may go without power from Tuesday after Reliance Energy announced that it will disconnect supply over non-payment of dues. The dues have run up to Rs 63 crore in over 10 years. There are 3,250 connections to the colony situated on the Eastern Express Highway.

The company spokesperson in a release said they had to take a decision on disconnection of electricity as the residents have not paid their bills despite several notices, offers of payment through instalments, and token disconnections. He added that supply would be restored only after the outstanding dues are settled.

Such non-payment results in higher tariffs for other customers of the DISCOM, of whom nearly 70% are from economically weaker sections and who are effectively cross-subsidising customers not paying their dues. "As a distribution licensee, Reliance Energy is empowered to disconnect electricity of its customers under section 56 (1) of Electricity Act, 2003, for non-payment of electricity dues," the spokesperson said.

Sources said Siddharth Colony residents stopped payment of bills since 2005. The company started meter readings and bill distribution from 2013 but the settlement of bills did not come through.

Siddharth Colony resident and RPI activist Raju Waghmare told DNA: "The developer, who is currently in the midst of carrying out slum redevelopment, paid Rs 10.50 crore in October last year. The developer has sought time for further payment. The company should give some more time for settlement of dues and not disconnect power supply."

Union Minister of State for Social Justice Ramdas Athavale is expected to meet Maharashtra Energy Minister Chandrashekhar Bavankule on Tuesday seeking his intervention for an amicable settlement of the issue.

Reliance Energy is in the process of being acquired by Adani Transmission. The regulatory approval is awaited.

Tuesday D-Day

The dues have run up to Rs 63 crore in over 10 years. There are 3,250 connections to the colony situated on the Eastern Express Highway

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