Haryana employees flag procedural gaps in power licence cancellation move
A section of the employees' joint front fears the government's directions to cancel a private firm's licence may face legal challenges.
According to The Hindu, employees in Haryana have raised concerns that a procedural gap in the government's directions to cancel a private power distribution licence could allow the firm to challenge the move in an appellate tribunal.
The employees' joint front expressed fear that the directions issued to the Haryana Electricity Regulatory Commission (HERC) under Section 108(1) of the Electricity Act, 2003, may not withstand legal scrutiny. They noted the directions were approved by Chief Minister Nayab Saini rather than the Council of Ministers.
Former Finance Minister Sampat Singh sought clarity on whether the directions were backed by a formal decision of the Council of Ministers. Mr Singh stated that the lack of a hearing for Eleven Power Private Limited and the absence of Cabinet approval are grounds for the firm to move the Appellate Tribunal for Electricity (APTEL).
On October 26, the Energy Department Secretary directed the HERC not to operationalise a parallel distribution licence in Haryana, citing the Chief Minister's approval. Acting on this, the HERC cancelled the 25-year parallel licence granted to Eleven Power for Gurugram and Nuh on October 28.
Eleven Power has indicated it will pursue legal remedies, while Dakshin Haryana Bijli Vitran Nigam filed a caveat before the APTEL on October 28. A member of the joint front claimed some members suspect a conspiracy to benefit the private firm.
The joint front is expected to meet soon and may write to the Chief Minister to seek Cabinet approval for the decision at its meeting on November 3.