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UT completes transfer of employees, assets and liabilities of electricity wing to CPDL

The move follows the expiry of the 12-month provisional period stipulated under the Chandigarh Electricity Reforms Transfer Scheme, 2025, notified by the UT Engineering Department on January 31 last year.

cpdlGautam has questioned the legality of shifting employees to the newly created power distribution company.

Bringing closure to the year-long provisional arrangement, the Chandigarh Administration has formally completed the transfer of employees, assets and liabilities of the Electricity Wing of the Engineering Department to Chandigarh Power Distribution Limited (CPDL), with effect from February 1, 2026.

The move follows the expiry of the 12-month provisional period stipulated under the Chandigarh Electricity Reforms Transfer Scheme, 2025, notified by the UT Engineering Department on January 31 last year. While the scheme had initially declared February 1, 2025, as the effective date for the transfer of electricity distribution functions, the Administration had kept the transition provisional to retain the authority to modify terms, including valuation of assets and liabilities.

In a notification issued on January 30, 2026, the administration clarified that the provisional phase had now concluded and that all transfers made under the scheme, as amended from time to time, had attained finality. The notification stated that references to “provisional transfer” in the scheme would henceforth be read as “final transfer”.

The scheme covers the transfer of electricity distribution operations along with associated assets, liabilities, rights, obligations, proceedings and personnel of the erstwhile electricity wing to the government-owned distribution company.

The finalisation of the transfer comes amid ongoing legal proceedings before the Central Administrative Tribunal (CAT). On January 29, the tribunal observed that employees of the electricity wing continued to be part of the Chandigarh Administration during the provisional period and were working with CPDL on a temporary basis.

The observation was made while hearing an application filed by Pankaj Kumar Gautam, an employee of the Electricity Wing, who has challenged the transfer of his services to CPDL under the reform scheme.

Gautam has questioned the legality of shifting employees to the newly created power distribution company.

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Opposing the plea, both the Chandigarh Administration and CPDL argued that the services of all employees of the Electricity Wing had already stood transferred through the notification issued on January 31, 2025, rendering the application untenable.

After examining the scheme and related records, the tribunal noted that the transfer remained provisional for a period of 12 months, ending on January 31, 2026.
Until the completion of that period, the Bench held employees continued to remain with the Administration, even though they were functioning under CPDL.

The tribunal directed that status quo with regard to the applicant’s service conditions be maintained until the next hearing, while clarifying that the order would not prevent the employee from continuing his duties under CPDL.

The matter is scheduled to come up for further hearing on February 27.

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