Make this your homepage
Business News
Home > Business News
'Can't act contrary to public interest': SC imposes Rs 5 lakh fine on AP discom
TIWN
'Can't act contrary to public interest': SC imposes Rs 5 lakh fine on AP discom
PHOTO : TIWN

New Delhi, Feb 3 (TIWN): The Supreme Court on Wednesday said power distribution companies (discoms) cannot be permitted to change their decisions in connection with power purchase agreement at their whims and fancies, as it imposed a cost of Rs 5 lakh on Andhra Pradesh Southern Power Distribution Power Company Ltd (APSPDCL).

A bench of Justices L. Nageswara Rao and B.R. Gavai said: "We have no hesitation to hold that the appellants - discoms, could not be permitted to change the decision at their whims and fancies and, particularly, when it is adversarial to the public interest and public good. The record would clearly show that the change in decision is arbitrary, irrational and unreasonable."

 
It noted that discoms are instrumentalities of the state government and every action of a state is equally required to be guided by public interest, and every holder of a public office is a trustee, whose highest duty is to the people of the country.
 
The top court judgment came on an appeal filed by APSPDCL and others challenging the January 7, 2020, judgment passed by the Appellate Tribunal for Electricity (APTEL), allowing the appeal of Hinduja National Power Corporation Ltd (HNPCL).
 
The bench upheld the APTEL decision and cited that the state government had given assurance procuring 100 per cent power from the project of the HNPCL.
 
In the 82-page judgment, the bench said: "We ask a question to ourselves, as to whether public interest, which is so vociferously pressed into service in the present matter by the appellants - discoms, lies in purchasing the power at the rate of Rs 3.82 per unit from HNPCL or by purchasing it at the rate of Rs 4.33 per unit from KSK Mahanadi".
Add your Comment
Comments (0)

Special Articles

Sanjay Majumder Sanjay Majumder
Anirban Mitra Anirban Mitra