Nomination of private individuals on discom boards by AAP govt illegal: Delhi L-G VK Saxena

According to Raj Niwas officials, the L-G had taken the decision based on an inquiry report submitted by the Delhi power department and the Chief Secretary in light of a complaint on September 26 last year. “L-G has asked for the Chief Minister to be informed about this and action be taken. It has been brought out in the report that these private individuals were illegally appointed surreptitiously by the AAP government as ‘government nominees’ on the Board of BRPL and BYPL in 2019, despite written objections on file by then L-G Najeeb Jung on 01.11.2016 and then L-G Anil Baijal on 11.08.2017,” Raj Niwas officials said.

According to L-G House officials, the CM had, in 2017, sent a file proposing their appointment as government nominees to which then L-G Baijal had issued directions for a cabinet decision in this regard to be taken and sent to him so that he could invoke difference of opinion as per clause 4 of Article 239AA of the Constitution.

“However, the Cabinet took a decision to appoint them… (and) surreptitiously notified the appointment of these private individuals as government nominees on the board of the DISCOMS. Once appointed, these government nominees facilitated a decision of the DISCOM Boards of unilaterally lowering interest rates charged on Late Payment Surcharge (LPSC) that these DISCOMS owed from 15-18% to 12%, thereby causing a loss of Rs 8,683.67 crore,” officials alleged.

The officials claimed that the government nominees had also played a role in deferring the Annual General Meeting (AGM), scheduled on September 27, 2022, where the issue of the “unilateral reduction of LPSC” would have been discussed by absenting themselves.

The Delhi government has 49% shares in these private DISCOMS and, as per Article VI of the shareholders agreement, the government nominees on its boards have the veto right to block any inappropriate proposal that is detrimental to state finances.

According to the report of the power department and chief secretary, the Delhi government, instead of recovering outstanding dues amounting to Rs 21,250 crore for default in payment for power purchased by BRPL and BYPL from state-owned power generation companies, and debarring them from further business in Delhi, agreed to allow them to settle their outstanding dues against future payments. These payments, as per the report, was to be made to them by the government in the form of subsidy reimbursements for “supposedly free power that they provided to the consumers”; this amounted to a sum of Rs 11,550 crore being settled as reimbursements, the officials claimed.

Accusing them of acting in collusion the private companies to “serve financial interests of DISCOMS”, the L-G, according to the officials, has also asked the Directorate of Vigilance to investigate the matter from the angle of possible quid pro quo.

“The L-G in his order has also directed the power department to take immediate and concerted efforts to get a status quo order of the Supreme Court, regarding a stay on the AGM, vacated at the earliest and undertake any other legal action as deemed fit under applicable laws to ensure recovery of outstanding dues from the DISCOMS,” the officials added.

In response, the Delhi government said all allegations made by the L-G are absolutely baseless: “The Constitution Bench of SC has clearly said in its orders that L-G does not have any powers to take independent decisions. Therefore, his decisions and directions are illegal and unconstitutional. He is acting like a dictator with complete disregard for the highest court of our land. This is tantamount to contempt of the Hon’ble Supreme Court.”