The AAP government Thursday faced a setback over its decision to appoint new directors to the boards of the three discoms, after the Delhi High Court said such appointments were “illegal”.
The order comes in the backdrop of AAP government’s decision, taken in June last year, to nominate new directors to the boards of the three power distribution companies in the capital, in which it has a 49 per cent stake. A PIL had questioned the validity of appointing nominee directors without the Lt Governor’s approval.
Another step by the Delhi government — directing the Delhi Electricity Regulatory Commission (DERC) to make discoms pay a penalty on an hourly basis in case power outages exceed two hours — was also held to be “illegal and unconstitutional” by the High Court. The AAP government had told the regulator that the penalty amount should be adjusted in the consumer’s bill.