4 min readChandigarhUpdated: Apr 23, 2026 01:23 PM IST
PSPCL’s own communication dated July 23, 2025, had stipulated that the existing bank guarantee would be returned only after submission of the revised guarantee.
The Punjab State Power Corporation Limited (PSPCL) has returned a bank guarantee worth Rs 1.97 crore to a Ludhiana-based company formerly associated with Punjab Power Minister Sanjiv Arora without securing a revised bank guarantee, The Indian Express has learnt.
The company in question is Ritesh Properties and Industries Ltd (RPIL), a public limited company listed on the Bombay Stock Exchange, and promoted by the father of Sanjiv Arora, Pran Arora.
The issue pertains to the 40-acre Hampton Court Business Park project in Ludhiana. PSPCL had initially approved a 66 KV power supply line against submission of a bank guarantee of Rs 1,96,71,0101 under Regulation 6.6.2 (Single Point Supply) of the Punjab State Electricity Regulatory Commission (PSERC). The developer later sought conversion to an 11 KV line, which, as per regulations, required submission of a fresh bank guarantee of Rs 1,87,05,150 before the earlier guarantee could be released.
PSPCL’s own communication dated July 23, 2025, had stipulated that the existing bank guarantee would be returned only after submission of the revised guarantee. However, records show that on February 2, 2026, the developer sought return of the earlier bank guarantee, and the utility issued a no-objection certificate for its release the very next day.
A PSPCL order dated February 3, 2026, states that the competent authority approved the return of the bank guarantee of Rs 1,96,71,0101 subject to the condition that the revised bank guarantee would be deposited as and when demanded, and that no electricity supply would be released until the prescribed conditions were fulfilled. The order was issued with the approval of the Director (Commercial), PSPCL.
PSPCL regulations require a bank guarantee, typically 35 per cent of the cost of the supply system, to safeguard against default before power supply is sanctioned to large real estate or industrial projects. A senior functionary said such guarantees are enforceable and can be forfeited in case of non-compliance.
Sequence of events
The sequence of events assumes significance as PSPCL had, on July 23, 2025, linked the return of the earlier bank guarantee to prior submission of the revised one. The company had, on September 16, 2025, sought a reduction in the bank guarantee and related charges, following which PSPCL sought clarification from PSERC on December 31, 2025, and filed Petition No. 2 of 2026.
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On January 30, 2026, PSERC ordered that the bank guarantee be calculated on contract demand instead of load and asked PSPCL to file a comprehensive petition for review of regulations. PSPCL has learnt not to have filed such a petition.
The Power Engineers Association (PEA) has sought an inquiry into the matter. Ajaypal Singh Atwal, a PEA functionary, said, “It is a matter of impropriety. It should be inquired into.”
Power minister’s response
Meanwhile, Sanjiv Arora, currently on a visit to the Netherlands along with Chief Minister Bhagwant Mann, told The Indian Express, “M/s Ritesh Properties is not owned by me. I have already resigned from the company. Otherwise, we have complied with all the rules. What is the illegality? The bank guarantee was returned after permission from the regulator. And what is a bank guarantee? There is no amount involved. It is a paper issued by a bank. The new bank guarantee has already been replaced. Where is the loss to anyone in this?”
Sanjiv Arora had resigned from all his companies after he was elevated as a cabinet minister on August last year.
Kanchan Vasdev is a Senior Assistant Editor in The Indian Express’ Punjab bureau. She is a highly experienced journalist with 22 years of expertise covering high-stakes politics, governance, and social issues in Northern India.
Professional Background
Role: Primary reporter covering the Punjab Chief Minister’s Office (CMO), government policies, and the Aam Aadmi Party (AAP) leadership in the state.
Experience: She previously worked with The Tribune and has played a key role in launching various city editions.
Special Projects:
Abandoned Brides: Authored a monograph on brides abandoned by NRIs as part of the Prabha Dutt Memorial Fellowship.
Environment: Worked as a Centre for Science and Environment (CSE) fellow, focusing on the pollution levels in the Satluj river.
Recent Notable Articles (Late 2025)
Her recent reporting focuses on the legislative strategies and political maneuvers of the Bhagwant Mann-led Punjab government:
1. Legislative & Governance Standoffs
"Punjab govt advances special Assembly session to pass resolution against VB-G RAM G Bill" (Dec 20, 2025): Reporting on the state's move to block the Centre's "Viksit Bharat" mission, which the state claims will undermine MGNREGA.
"Punjab govt doubles down on special sessions, sixth in January" (Dec 19, 2025): Detailing the AAP government's use of special sessions as a legislative tool amid tensions with the Governor.
"Punjab asks 'VIP teachers' working near Chandigarh to go back to border districts" (Dec 16, 2025): Reporting on CM Mann's move to end the practice of influential teachers avoiding postings in remote areas.
2. Political Analysis & Rural Polls
"Punjab rural polls: Why Akalis are likened to dinosaurs in Punjab" (Dec 19, 2025): Analyzing CM Bhagwant Mann's rhetoric against the Shiromani Akali Dal (SAD) following local body elections.
"AAP claims win in 78% Punjab zila parishads as counting continues" (Dec 18, 2025): Breaking down the results of the 2025 rural elections.
"Rahul Gandhi and Sidhu alike, says Bhagwant Mann" (Dec 13, 2025): Covering the CM's critique of the Congress leadership.
3. Law Enforcement & Bureaucracy
"Suspended Punjab IPS officer Ravjot Kaur Grewal awaits reinstatement" (Dec 10, 2025): Investigative reporting on the bureaucratic red tape involving the Election Commission and the state government.
"Punjab declines to give parole to Amritpal Singh" (Nov 27, 2025): Detailing the state government's refusal to grant parole to the radical preacher and sitting MP.
4. Welfare & Economy
"Punjab government's plan to add more freebies to 'atta-dal' scheme hits funds roadblock" (Dec 4, 2024): An analysis of the fiscal challenges facing the state's flagship food security program.
"Mann leads Punjab delegation to Japan and South Korea for investor outreach" (Dec 2, 2025).
Signature Beat
Kanchan Vasdev is known for her insider access to Punjab's political executive. Her writing provides deep insights into how state policies are formulated and the friction points between the state government and central authorities. Her dual expertise in environment and law allows her to report on complex issues like the "Farmhouse Policy" (Dec 18, 2025) and river pollution with a unique policy-oriented lens.
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