HC applies brakes to Chandigarh power privatisation proceedings

Tribune News Service

Chandigarh, May 28

The Punjab and Haryana High Court today applied brakes to the move to privatise the functioning of the UT’s electricity wing.

Acting on an application filed by the UT Powermen Union, a Division Bench today made it clear that further proceedings in the matter would remain in abeyance for the time being.

What the Bench said

Acting on an application filed by the UT Powermen Union, a Division Bench on Friday made it clear that further proceedings in the matter would remain in abeyance for the time being.

UT to move SC

The UT will move the Supreme Court. “We have grounds to file an appeal against the stay orders,” said UT Adviser Manoj Parida.

The order, dictated in the open court by the Bench of Justice Jitendra Chauhan and Justice Vivek Puri, was yet to be uploaded on the High Court website. The directions came after senior advocate Ashwani Kumar Chopra and Akshit Chaudhary told the Bench that the process had been expedited even though people were dying because of the second wave of Covid. Directions were also sought for staying the operation of a document in this regard.

The Bench, on a previous date of hearing, was told on the petitioner’s behalf that the union was aggrieved by the decision to privatise the electricity wing by selling 100 per cent stake of the government in the absence of any provision under Section 131 of the Electricity Act, 2003. The Bench was told that the process of privatisation of the electricity wing could not be initiated at all, especially when it was running in profits. The sale of 100 per cent stake was unjust and illegal as the electricity wing was revenue surplus for the past three years. It was economically efficient having transmission and distribution losses less than the target of 15 per cent as fixed by the Ministry of Power.

It has also contended that the transfer scheme without calling for objections from all stakeholders could not be legally sustained and acted upon. As per Section 131(2) of the Act, the power could not be transferred to a totally private entity with no stake or control of the government.

“The entire action of the respondents in privatising the electricity wing of the Engineering Department of the UT and the entire process being carried out pursuant thereto, including office memo dated June 10, the decision taken during the meeting of the privatisation of the power department/utilities held on May 12 as far as the UT, Chandigarh, is concerned and the notice inviting bids and the documents prepared in relation thereto is not only illegal, unjust, arbitrary, unconstitutional, but also in violation of the provisions and the principles of law...,” it was added.