HP Consumer Commission Holds Sardar Sarovar Nigam Liable For Unilateral Early Redemption Of Deep Discount Bond

The Himachal Pradesh State Consumer Disputes Redressal Commission held Sardar Sarovar Narmada Nigam Limited liable for deficiency in service for unilaterally redeeming its Deep Discount Bonds before maturity.

The Commission said the company could not alter the bond terms or enforce early redemption without obtaining mandatory consent from investors. It was observed that such unilateral action violated the legitimate expectations of bondholders and caused financial loss.

The Commission directed the company to compensate the complainant and comply with the original bond terms.

The decision reinforces investor protection under the consumer law framework. 

[Sardar Sarovar Narmada Nigam Limited v. Jagdish Chand]