LG removes govt’s 4 nominees on power firm’s board, AAP hits back

Sisodia termed replacement of the government nominees unconstitutional

NEW DELHI: Delhi lieutenant governor (LG) VK Saxena has removed four Delhi government nominees on the board of the two power distribution companies in the capital, BYPL and BRPL, and replaced them with senior government officials over allegations of corruption leading to a loss of over Rs8,000 crore to the exchequer, according to officials in the LG office.

Deputy chief minister Manish Sisodia, speaking at a press conference, categorically rejected the allegations, and termed the replacement of the government nominees “unconstitutional”.

According to an order issued by the power department on Friday, four Delhi government nominees that include Jasmine Shah, vice-chairperson, Dialogue and Development Commission of Delhi, Naveen ND Gupta, son of AAP Rajya Sabha MP ND Gupta, Umesh Tyagi and JS Deswal will be replaced with the senior most officials in the power and finance departments, and the managing director of Delhi Transco Limited.

While Shah termed the allegations as “slanderous and without a shred of evidence”, the three others did not comment on the matter.

The Friday order by the power department said, “LG, after observing that the matter being urgent and sensitive in nature warrants expeditious action, directed… to replace four private persons with senior government officers as government nominees on behalf of three discoms pending the decision of the President of India. Finance Secretary, power Secretary and MD, Delhi Transco will now represent the Delhi government on the Discoms, as per regular practice, followed since Sheila Dikshit’s time as CM, when these Discoms came into existence.”

The action against the four AAP government nominees follows a January 13 directive by the LG in which he had directed their removal, saying their appointment was “patently illegal”. The LG had also ordered a vigilance inquiry into the matter, and asked chief secretary Naresh Kumar to submit an action taken report within 15 days. It could not be immediately verified if the chief secretary has submitted the report to LG or not.

Officials said the January 13 directive was based on an inquiry report submitted last year by the power department and the chief secretary. Quoting the report, the officials said the nominated members were accused of facilitating a decision by the discom board in which it “unilaterally” lowered interest rate charged on the late payment surcharge FEE(LPSF) from 18% to 12%, which allegedly caused a loss of ₹8,363 crore. The officials did not mention the year or the duration during which these alleged losses were incurred.

The latest decision has set off another flashpoint in the ongoing power tussle between the Centreappointed LG and the elected AAP government.

Deputy CM Sisodia said the allegations of the ₹8000 crore loss to the exchequer was “baseless and fictional”. “Everyday, the LG levels various allegations. The LG should get the alleged scam probed. I request the LG to follow the Constitution and the Supreme Court order,” Sisodia said at the press conference.

“LG’S orders removing Jasmine Shah and Naveen Gupta from the discoms’ board is illegal and unconstitutional. LG has overturned a four-year-old decision approved by the cabinet to appoint four professional nominees on the discoms’ board. LG does not have the power to repeal cabinet decisions related to electricity. Only the elected government has powers to do so. The LG has made a complete mockery of all SC orders and the Constitution,” Sisodia said.

“The SC has given the LG the power of the difference of opinion and made it clear that it should be invoked in rarest of the rare case. This difference of opinion (about discoms nominee) is illegal. There is an elaborate laid out procedure for difference of opinion which the LG does not follow. LG refuses to accept the SC orders. It is wrong and illegal,” Sisodia added.

BSES Yamuna Power Limited and BSES Rajdhani Power Limited did not comment.

In a statement, Shah said, “Prior to my appointment on the board of Delhi discoms along with Naveen Gupta and two other professionals in 2019, only bureaucrats were appointed (to the posts). A study on their performance showed that they did not contribute anything to the Discoms and often skipped board meetings. Keeping this in mind, CM Arvind Kejriwal decided to appoint qualified professionals on the board to oversee the performance of discoms. In our tenure as directors, all the 3 discoms have emerged as India’s top-ranked discoms...but the LG doesn’t want that and therefore wants to revert back to the old system.”