NTPC moves SC against discom, wants BSES to pay Rs 720 cr dues

In an application filed before the top court, NTPC said the discom should face proceedings for violating judicial orders directing the company to pay current dues on time.

Power generation company National Thermal Power Corporation (NTPC) moved Supreme Court to get distribution company BSES Rajdhani to clear its dues of Rs 720 crore, pending since October.

The court orders clearly state the discom shall keep paying the current bill. BSES paid TRANSCO and Indraprastha only till October 2014. Unfortunately, the SC hasn’t taken up our applications. (HT File Photo)

In an application filed before the top court, NTPC said the discom should face proceedings for violating judicial orders directing the company to pay current dues on time.

NTPC said it continued to supply electricity to the discom, despite the dues because of earlier court orders asking it to do so.

It moved the apex court as the non-payment of dues resulted in “serious loss and prejudice” to the generating company.

A chart provided by NTPC showed that BSES made a part of the payment for October 2015. NTPC said BSES still owed it around Rs 720 crore.

In a petition that is pending before the SC since 2014, the BSES alleged that illegal decisions of the Delhi Electricity Regulatory Commission (DERC) and Delhi government left it cash-strapped.

The discom said they were forced to borrow money to fund day-to-day operations.

The company said the DERC-prepared tariff structure caused a loss to it.

In July 2014, the SC restrained NTPC from disconnecting power supply to BSES. The corporation had served it with a disconnection notice on the ground the power utility owed it Rs 400 crore.

The top court, however, asked the company to clear its current dues. On March 10, 2015, the top court reserved judgment on the discom’s petition.

Delhi’s power generation companies TRANSCO and Indraprastha Gas Limited too filed contempt applications against BSES.

The SC is yet to hear them. Their counsel Wasim Qadri told HT: “The court orders clearly state the discom shall keep paying the current bill. BSES paid TRANSCO and Indraprastha only till October 2014. Unfortunately, the SC hasn’t taken up our applications.”