HC adjourns hearing challenging Chandigarh power depts’ privatisation

The UT had told the court that the plea was premature, a submission countered from the petitioner’s side; it also informed the HC that process is on, and it will take another two to three months to pick a company

The Punjab and Haryana high court on Thursday adjourned the hearing on a plea wherein UT’s move to privatise the power department has been challenged.

The matter has been taken to the court by UT Powermen Union and the HC stayed the process on two occasions. (Image for representational purpose)

It was listed for hearing before Chief Justice RS Jha and Justice Arun Palli, who adjourned it for final disposal. The court is yet to put out a date for the next hearing.

During the hearing on Thursday, the UT had told the court that plea was premature, a submission countered from the petitioner’s side. UT also informed the court that process is on, and it will take another two to three months to pick a company.

On Wednesday Kolkata-based industrial and services conglomerate RP-Sanjiv Goenka (RPSG) Group quoted the highest bid for the department and is set to take over the department. It quoted ₹871 crore against the reserve price of ₹175 crore. EED was one of the seven companies in the race for taking over the department.

The matter has been taken to the court by UT Powermen Union and the HC stayed the process on two occasions. But the Supreme Court intervened and, on both occasions, stay was vacated. The union is of the view that the administration is selling 100% stake of the government in the absence of such a provision under Section 131 of the Electricity Act, 2003.

Another argument of the union is that the department is running into profits and its revenue has been surplus for the past three years, still it is being privatised.