Penalised by uppcl for running beauty parlour from home
Dipika Bhattacharjee
(Querist) 19 September 2014
This query is : Resolved
One of my friends was running a beauty parlour from home. One day suddenly a group of people from UPPCL came and penalised her a heavy amount for using the domestic electricity connection for commercial purpose. UPPCL team has said she can't run any such beauty parlour in the residence. Please let me know if running a beauty parlour from home is illegal.
Please refer the following news article on the respective matter:
http://timesofindia.indiatimes.com/city/lucknow/Now-domestic-power-connection-valid-for-commercial-use-too-UPERC/articleshow/4197117.cms
Dr J C Vashista
(Expert) 19 September 2014
You have already replied your query, it is illegal.
P. Venu
(Expert) 19 September 2014
Running a beauty parlour from Home is not illegal unless there is a specific law to that effect.
However, different considerations are involved in availing of electricity for that activity at lesser tariff meant for residential purposes. You can appeal or even approach the Courts, but chances of success are rather remote.
Moreover, the amount imposed, though called fine, is a consolidated amount payable at commercial rates as one time settlement.
It is advisable that a separate connection is taken for the beauty parlour.
ajay sethi
(Expert) 19 September 2014
is she also staying in said house and whether only one room is sued as beauty parlour?
Rajendra K Goyal
(Expert) 19 September 2014
It is illegal and commercial connection should have been taken.
Dipika Bhattacharjee
(Querist) 19 September 2014
There is no such established structure there. Its a 2BHK 1st floor flat. She runs her beauty parlor from one of her two bedrooms. There is no signboard of beauty parlor. Now a days almost every household/housewife dose some activity to contribute in their income. In our society some housewives are giving dance classes, drawing classes, selling cloths, tailoring cloths. daycare centre, selling stationary from balcony. I want to know for that purpose everyone has to apply for a commercial connection? There are hardly one or 2 visitor per day to her parlor. Is it viable to apply for separate connection for those activities. She has paid almost 1.75 lakh as penalty. She has two small kids and not have that much income so that can send both of them to the creche and take a separate place for running parlour. She has no way to earn in the current scenario.
I am giving two URLs for ur info. Please go through that. If there is some hope please let us know. As she is struggling with her financial condition now a days.
URL 1: http://timesofindia.indiatimes.com/city/lucknow/Now-domestic-power-connection-valid-for-commercial-use-too-UPERC/articleshow/4197117.cms
URL 2: http://timesofindia.indiatimes.com/india/Hospitals-are-non-domestic-power-consumers-court-rules/articleshow/38569545.cms
Thanx n regards
Dipika
Devajyoti Barman
(Expert) 19 September 2014
She is luck the only UPPCL has imposed penalty. Even if the Municipality is free to raise penalty if she does not apply for trade LIcense and pay increased payment of house tax.
P. Venu
(Expert) 19 September 2014
Legality of running a beauty parlour within a residential premises deserves to be distinguished from the prerogative of charging non-residential tariff rates for commercial activities even if within the premises of a home. Municipalities or authorities can interfere only if they are empowered by law. But the power companies can and should prevent use of residential connections for commercial purposes.
Raj Kumar Makkad
(Expert) 22 September 2014
Well advised by experts hence no more to add.
T. Kalaiselvan, Advocate
(Expert) 27 September 2014
Running a beauty parlor in home is not a big establishment and it cannot be said it is thriving business at home, it is almost like other sundry cottage industry business which do not attract the strict rules or laws to be enforced. The action of UPPCL might be on a tip off by some envious neighbors. If she has proof to prove that she was not having a commercial establishment in her home as alleged, she can very well fight by first writing to the UPPCL about their illegal demand and refer the matter before the court and recover the amount paid and also to obtain injunction for future issues.
P. Venu
(Expert) 27 September 2014
With due respect to expert Shri T. Kalaiselvan, it may be hyper-technical to rigorously apply and enforce rules and regulations vis-a-vis the sundry cottage industry from home, esp. that managed by home makers in their spare time; however, disallowing power supply to such enterprises at residential rates (which is highly subsidsed) is an entirely different matter. The only prudent course open to the queriest is to pay amount as demanded and get separate power connection to the beauty parlour at home. Remember, running a beauty parlour is power intensive, esp. if the facility air conditioned.
Approaching a court of law would only open a Pandora's Box, dragging all those similarly placed (as the queriest) into trouble. As there is a larger principle involved UPPCL (and other power companies) are bound to take up the matter up to the apex Court or till they succeed.
Dr J C Vashista
(Expert) 27 September 2014
I fully agree with expert opinion of Mr. P. Venu, running a beauty parlour from home is a commercial activity for that the author has to pay at commercial rates and not domestic rate (subsidised).
