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PIL seeks CBI probe for under recovery of penalty from Adani Power Ltd

Source : BUSINESS_STANDARD
Last Updated: Thu, Apr 18, 2013 20:21 hrs

The Gujarat High Court has issued notice to Adani Power Ltd (APL) in connection with a public interest litigation seeking CBI probe into alleged under recovery of Rs  160 crore by state-owned Gujarat Urja Vikas Nigam Ltd (GUVNL) from the company.

A division bench of Chief Justice Bhaskar Bhattacharya and Justice J B Pardiwala also issued notices to GUVNL, Gujarat Energy Transmission Corporation Limited (GETCO) and state government seeking explanation on allegation in the PIL of under recovery of Rs  160 crore penalty which was required under the power purchase agreement (PPA) signed between APL and GUVNL. The next hearing is scheduled after two weeks.


The PIL has been filed by general secretary of  Peoples’s Union for Civil Liberty (PUCL) claiming that the GUVNL had passed on undue benefits to APL which has resulted in loss of Rs  160 crore to state exchequer. The PIL was filed based on the findings of the recently release report of the Comptroller and Auditor General (CAG) of India, which was tabled in state assembly on April 2.

According to case details, the petitioner has claimed that GUVNL had not recovered Rs  160.26 crore  out of the total of Rs  240.08 crore penalty on APL under the norms of the PPA between the two entities.

It further said that only Rs  79.82 crore was recovered by GUVNL after incorrect assessment of penalty. The petitioner has demanded immediate recovery of Rs  160.26 crore from APL and sought probe by central bureau of investigation (CBI) in the non-recovery of dues from the private company.

Gujarat Urja Vikas Nigam Limited (GUVNL), as per CAG report, was involved in non-adherence to the terms of power purchase agreement (PPA), which led to short recovery of penalty of Rs  160.26 crore and passing of undue benefit to Adani Power Limited (APL).

The CAG report further observed that GUVNL recovered a penalty of only Rs  79.82 crore from APL for its failure to supply power and also for the short supply of power against GUVNL's entitlement in the power generated by APL during August 2009 to January 2012.

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