Karnataka: Forum directs Rs 29 lakh compensation to consumer affected by gas leak incident

In connection with a fire mishap due to gas leak in Arsikere, the Hassan District Consumer Disputes Redressal Forum has ordered the insurance and gas companies to pay a compensation of Rs 29 lakh to the affected consumer.

Channabasappa of Arsikere is a consumer of Kusuma Gas Agency. On October 6, 2023, the gas cylinder belonging to Bharat Gas exploded due to gas leak, at his house. His wife was injured in the mishap. Along with 105 grams of gold, 500 grams of silver, Rs 1 lakh cash, the houses and household items in Channabasappa and his brother Ramanna’s house were gutted.

Following the incident, Ramanna lodged a complaint at Banavara police station. The Fire and Emergency Services officers submitted a report that the fire mishap due to gas leak was due to substandard quality of the cylinder, regulator and gas pipe and the loss was estimated to be Rs 29 lakh.

Ramanna filed a complaint with the Hassan District Consumer Disputes Redressal Forum on May 27, 2025, seeking a compensation of Rs 49.75 lakh from the gas agency, insurance company and gas company for not providing compensation for the accident caused by service deficiency.

On April 22, the bench comprising forum Chairperson C M Chanchala and member R Anupama, who heard the case, ordered a compensation of Rs 2 lakh from SBI General Insurance Company and Rs 27 lakh from Mangalore LPG Territory Company, with effect from October 6, 2023, along with the interest rate of 10 per cent. It also ordered a compensation of Rs 5,000 for service deficiency, Rs 5,000 for mental harassment, and Rs 5,000 as fees, with an interest of 10per cent on the entire amount in case of default.