GEN­ER­A­TION COM­PA­NIES MOVE SC AGAINST BSES

Resource Digest - - RESOURCE DIGEST -

State-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.

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.

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