Voluntary Deposit Scheme (‘VDS’) is a scheme where Domestic consumers would have choice to voluntarily deposit certain amount with Mahanagar Gas Limited (‘the Company’) towards payment of his/her gas bills to be raised by the Company from time to time and in turn, earns interest on the amount so deposited as per the terms contained in this scheme. The objective is to provide an alternative method of effective payment in respect of the gas bills which would obviate the need for issuing and handling paper instruments and thereby facilitate improved customer service.

Eligibility and operation : All Domestic Consumers who have been provided with Piped Natural Gas supply by the Company are eligible to participate under the VDS subject to compliance to the terms contained in the Scheme.

Upon receipt of deposit under VDS, a VDS account will be maintained by the Company. The bills raised subsequent to the deposit would be adjusted against the VDS Account and same will be reflected in the bill. The consumer who opts for VDS would be classified as VDS Holder.

Initial deposit amount : A consumer desiring to opt for VDS will require to deposit initial amount of not less than Rs. 1,000.00 or such amount exceeding Rs. 1,000.00 in multiples of Rs. 500.00.

Minimum balance replenishment and Maximum deposit amount : A VDS holder would be required to replenish the VDS account once the balance in the VDS account falls below Rs. 500.00 with such amount as may be deemed suitable in the multiples of Rs. 500.00. In order to earn interest on the VDS amount, a minimum balance of Rs. 500.00 is required to be maintained in the account. Maximum amount to be deposited in the VDS account shall be Rs. 10,000.00 (Rupees Ten Thousand Only). Amount above Rs. 10,000.00 would not earn interest.

Further deposit : A VDS Holder would have discretion to further deposit the amount under VDS upto maximum limit of Rs. 10,000.00 in the multiples of Rs. 500.00.

Procedure to apply : A consumer desiring to opt for VDS would need to fill up VDS Application Form and enclose therewith crossed Cheque/Pay Order payable to Mahanagar Gas Limited, Mumbai. The Cheque must be drawn on any Bank situated in Mumbai.

The duly filled application form along with the crossed Cheque/Pay Order can be deposited by the consumers at various collection centres as notified by the Company from time to time or dispatched at the address notified in the application.

Bill Adjustment : The Company will continue to raise the gas bills for all the consumers including VDS Holders. Incase of a VDS Holder, the gas bill amount will be adjusted from the VDS and same will be reflected in the gas bill.

Incase the amount available in the VDS is lesser than the gas bill amount, the amount available in the VDS will be adjusted and the balance amount will be reflected in the gas bill which will be required to be paid by the VDS Holder/consumer as per the due date.

The adjustment of gas bills from the VDS will commence immediately upon realization of deposit amount in the VDS Account.

The objective of VDS is to provide an option of bill payment to the consumer and hence, adjustment of gas bills will be carried out by the Company without any further mandate by the consumers.

In the event, for any reason, gas bill amount is not adjusted either in full or part from the VDS, the consumer will be required to pay the gas bill as per the due date or bring the same to the notice of the Company within the due date given in the bill, so that gas bill amount could be adjusted from the VDS amount, if available in the VDS Account.

Interest : The interest would be payable on the VDS amount based on Reducing Balancing Method.

The rate of interest would be decided by the Company from time to time. The present applicable rate of interest is 7% per annum.

The interest amount for the period April to March would be credited to the VDS account of all VDS Holders once in every year in the month of May.

Incase the VDS amount falls below Rs. 500.00 and same is not replenished within the next 3 months time, no interest would be payable to such VDS Holders.

The interest amount would be rounded off to the nearest Rupee while crediting to the VDS account while making the refund.

Closure of VDS Account : The consumer, at his own discretion, would be entitled to close his VDS account by giving a written intimation to the Company.

The VDS account will be closed within 30 days from the date of receipt of intimation and the balance amount lying in the VDS, as at the time of closure of account, will be adjusted by the Company against future gas bills.

Further, incase the amount lying in the VDS account is in excess of Rs. 1,000.00, the amount exceeding Rs. 1,000.00 will be refunded to the consumer, if so desired, within 30 days from the date of receipt of written intimation.

Incase of closure of gas connection owing to the reasons such as demolition/ redevelopment of building, transfer of gas connection, vacation of flat by the consumer etc, the consumer would be entitled for receiving the refund of full amount lying in the VDS account within 30 days from the date of receipt of written intimation/closure of gas connection. The refund in such cases will be subject to adjustment of the amount, if any, payable by the consumer to the Company on account of gas supply, closure of gas connection etc.

The interest will cease to be paid on the VDS amount from the date of receipt of notification. Incase the amount is not refunded (where it exceeds Rs. 1,000.00 or due to closure of gas connection) within 30 days from the date of receipt of written intimation, interest as applicable for VDS would be payable by the Company till the date of refund.

Other Terms : TDS, as may be applicable under the Indian Laws from time to time, will be deducted from the interest amount and necessary certificate will be provided by the Company to the consumer.

Only a consumer can be a VDS Holder and no other person will be permitted/entitled to be a VDS Holder under the Scheme.

Necessary details on VDS would be reflected in the gas bills sent to the consumer from time to time. VDS statement would be provided to the consumer when demanded.

The Company reserves the right to close the Scheme at any point of time at its discretion, however, the amount already deposited by the consumer under the VDS would be governed by the terms of the Scheme.

In the event, the amount in the VDS is deposited on behalf of the consumer, the said Payer (who is not the consumer) will not be entitled to any right under this scheme nor he would become consumer of the Company by merely depositing the amount on behalf of the Consumer.

Incase of any dispute or disagreement, the consumer/VDS Holder will be required to first notify the Company by giving full details of the dispute within 30 days from the date such dispute has arisen. The Company will attempt to resolve such dispute within the framework of this Scheme. However, if the dispute persists, Courts in Mumbai only will have jurisdiction in any matter of the Scheme.

The Company reserves the right to vary, modify, alter, add or amend terms and conditions of VDS Scheme from time to time from such date as may be deemed suitable by the Company without assigning any reason thereof provided that same is not disadvantageous to the consumer in respect of amount already deposited in the VDS.

Effective Date : VDS Scheme would be effective from January 01, 2007 and will remain operative till further orders by the Company.