HC restrains action against Delhi discoms

The Delhi High Court on Friday restrained the city government from taking any action on the basis of a draft Comptroller and Auditor General (CAG) report on the functioning of power distribution companies.

The report alleged inflation of dues and passing on the “dead cost” of power to consumers without supplying equivalent electricity. The court order came on a petition filed by Reliance Infrastructure-promoted power distribution companies in Delhi, BSES Rajdhani Power Ltd and BSES Yamuna Power Ltd, which moved court on August 20. Tata Power Delhi Distribution Company Ltd is the city’s third power distribution company.

POWER TUSSLE

• CAG draft audit report on Delhi discoms leaked to the media on August 11
• RInfra-promoted BRPL moves court on August 20, alleging breach of confidentiality and no opportunity to give explanation on the findings of the report
• Delhi HC restricts Delhi government from taking any action on the draft report
• Petition also questions the modus operandi of CAG

The Delhi High Court also sought replies from the Aam Aadmi Party-ruled Delhi government and the CAG within two weeks. The court will hear the case next on September 11.

The Reliance petition also sought the CAG report be declared a draft and all its copies recalled and not shared with any third party.

“The applicant submits that the failure by the CAG to provide the applicant (BSES) with an opportunity to offer its explanations on the observations contained in the purported draft audit report has gravely prejudiced the reputation and standing of the applicant, especially since the contents of an audit report issued by Respondent No 3, though an unauthorised disclosure, are now in the public domain,” said the petition filed by BSES Rajdhani Power, reviewed by Business Standard.

It said the observations contained in the purported draft audit report “are not only incorrect and unjustified, but also overlook the provisions of the Electricity Act, 2003, Delhi Electricity Regulatory Commission regulations, judgments and orders of the appellate tribunal for electricity”.

Tata Power Delhi, after receiving a copy, said as the report was marked  confidential and specifically instructed it not to reveal any contents, it could not “respond to prejudicial interpretations and allegations drawn from an obviously leaked draft report”.

The petition in court also submitted that prior to publishing its observations, “the audit team could have verified the rates (power tariff) against the rates available with the Delhi Electricity Regulatory Commission and Tata Power Delhi, both of which were responding to the CAG during the course of the audit.”

“We are shocked at the highly irresponsible, factually incorrect, mischievous and distorted reporting in a section of the media, on a purported CAG audit report on the Delhi distribution companies. These media reports are tantamount to blatant contempt of the order of the Delhi High Court, which has put out a blanket prohibition on publication of any CAG audit report as the matter is sub judice,” a BSES spokesperson said in an emailed statement.