I live in Goa, my broadband is supplied by Sify. I have the 1000rs per month package which means during the hours of 10pm and 8am I have unlimited downloads and surfing.
During the past week my internet access gets cut off about midnight and resumes just after 8am the following day.

While I understand that the recent cable problems can and sometimes have made the service slower I do not see why Sify are cutting my net access during my unlimited access times. Has anyone else noticed this happening and is there any action I can take regarding this obvious "breach of contract" and this attempt by sify to force one to use the chargable period?

You have to see if there is any other customer in your area and consult him, if he is facing same then simply send mail to top authorities of and asking them to take proper action or you are to Consumer Right Courts.

I recently got some money back in same way in my account those were charged by my back unnecessarily.

Just check your LAN connection...May be the problem lies with your Local ISP.
Sometime. they switch off the router and this cause the disconnection of net.

Also you can complain regarding this to sify CC.

They have simply taken and holding the customers at ransom.I wonder as to how this company is allowed to exist in this world.