Indraprastha Gas Ltd (IGL) approached the Delhi High Court on Tuesday to contest a directive from a government regulator to cut gas tariffs in New Delhi, a top official said.
"IGL has approached today Delhi high court, where we have challenged the constitutionality and legality of the powers of the PNGRB (Petroleum and Natural Gas Regulatory Board) to fix the tariff," Managing Director M Ravindran told reporters.
PNGRB had, on Monday, passed an order for cutting network tariff by 64% and compensation tariff by 60% in the Delhi region. IGL, which has a monopoly in the region, has been severely impacted, both financially as well as in its market value.
PNGRB's directive had sent shares in gas utilities reeling, with IGL closing down 34% on Tuesday, while Gujarat Gas ended down 15% and Petronet LNG down 3.1%.
