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Home News Power Sector News Delhi - Generation companies move Supreme Court against BSES

Delhi - Generation companies move Supreme Court against BSES

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Supreme CourtState-run power generation companies – Indraprastha Power Generation Company (IPGCL) and Pragati Power Corporation (PPCL) – have again moved the Supreme Court seeking initiation of the contempt of court proceedings against the Reliance Infra-backed BSES power distribution companies and their top brass for failing to clear electricity dues of over R8,975 crore since October 2010.

A bench headed by Justice Anil R Dave has sought responses from the BSES Rajdhani Power (BRPL), its chief executive officer Amal Sinha, BSES Yamuna Power (BYPL), BRPL & BYPL chairman Lalit Jalan and BRPL & BYPL director Gopal K Saxena as to why contempt of court proceedings shouldn't be initiated against them for "willfully flouted and deliberately disobeying" its order of May 12, 2016, which asked the distribution companies to pay, at least, 70% of the current dues.

All the contemnors are in-charge of the day-to-day affairs of the distribution firms and are in the control of the helm of affairs, the generation companies said. The matter is posted for hearing on Friday.

The two distribution firms have to pay total outstanding dues of over R8,975 crore, including current outstanding dues of around R2,538 crore after adjusting subsidy to the three generation and transmission companies including Delhi Transco since January 1, 2014 as directed by the apex court on March 26, 2014. This also includes dues to the tune of Rs 842 crore payable to the state companies as per May 12, this year's SC order.

Earlier in February 2014, the apex court had sought reply from the top brass of the Capital's power distributors including Jalan, BYPL CEO Arbind Gujral and BRPL CEO Gopal Saxena on a contempt plea filed by Damodar Valley Corporation, seeking recovery of over R900-crore outstanding dues for drawing electricity since 2011.

IPGCL and PPCL submitted that the contemnors have no respect and regard for "the court of law and they have been making some payments intermittently as per their sweet will in total disregard of the orders passed by the apex court from time to time".

According to the application filed through advocate S Wasim A Qadri, the contemnors have not been paying their bills regularly since October 2010 and only ad-hoc part payments were made by them, causing innumerable inconveniences to the petitioners. Instead of distribution companies making payments, they approached the apex court asking the generation companies not to disconnect power supply till the court determined the mechanism for adjusting their dues.

Source- Financial Express


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