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After PIL flags Rs 2,600 crore unpaid dues, Punjab and Haryana High Court issues notice to govt, state power utility

The Punjab and Haryana High Court issued notice in a case in which the petitioner alleged that land belonging to the Punjab State Power Corporation Limited is being sold to fund government freebies.

4 min readJan 12, 2026 03:47 PM IST

Sidhu referred the court to internal PSPCL documents showing department-wise arrears and argued that instead of clearing these dues, the state was resorting to the sale of PSPCL land to tide over the utility’s financial stress.

The Punjab and Haryana High Court issued notice to Punjab on a Public Interest Litigation (PIL) alleging that the state government departments have failed to clear electricity dues of over Rs 2,600 crore, while the state power utility is being forced to sell its land to manage a financial crunch.

Appearing before a bench of Chief Justice Sheel Nagu and Justice Neerja Kulwant Kalson, Senior Advocate Baltej Singh Sidhu, assisted by Himmat Singh Sidhu, contended that various Punjab government departments were consuming electricity without paying bills, leaving outstanding dues of Rs 2,582 crore as of August 2025, as per records of the Punjab State Power Corporation Limited (PSPCL).

Sidhu referred the court to internal PSPCL documents showing department-wise arrears and argued that instead of clearing these dues, the state was resorting to the sale of PSPCL land to tide over the utility’s financial stress. He submitted that the value of land proposed to be monetised was approximately Rs 2,700 crore, almost equivalent to the unpaid electricity dues.

“This land is public property, acquired at public expense. Instead of paying the bills, they are selling the land of the power corporation,” Sidhu argued, adding that Punjab also owed nearly Rs 10,000 crore towards pending power subsidy.

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‘Burden will fall on consumers’

He pointed out minutes of the meetings held at Punjab Bhavan in October 2025, convened to deliberate on the utilisation of “unutilised and underutilised” government land, including PSPCL properties in Ludhiana and other areas. Sidhu relied on meeting records and land lists placed on record, as well as newspaper reports indicating that PSPCL had cleared the transfer of 165 acres of land for auction.

Referring to a media report, Sidhu submitted that the sale of these land parcels was estimated to generate nearly Rs 2,789 crore, and alleged that the exercise was being undertaken to fund freebies, such as a monthly stipend of Rs 1,100 for women, ahead of the Punjab Assembly elections early next year.

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“If the financial health of PSPCL is weakened, ultimately the burden will fall on consumers,” he submitted, urging the court to direct the state to first clear electricity dues rather than liquidate public assets.

The bench questioned the petitioner on whether any statutory bar existed on the sale of such land, and also raised concerns over the petition’s reliance on newspaper reports. The court asked whether Sidhu had sought the documents under the Right to Information Act (RTI).

Responding, Sidhu said that a delay in the RTI process could allow the sale to go through in the meantime. He pressed for the issuance of a notice, arguing that, under Section 56 of the Electricity Act, even ordinary consumers face disconnection for non-payment, while government departments continue to use power without clearing dues.

Opposing the petition, counsel for PSPCL and the state submitted that the land transactions cited by the petitioner were not new and stemmed from decisions taken as early as 2018–20, following the closure of the Guru Nanak Dev Thermal Plant at Bathinda.

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The counsel also argued that land distribution between PSPCL and the Punjab Urban Planning & Development Authority (PUDA) had already been approved and that the petition was based largely on media reports, amounting to proxy litigation.

After hearing the submissions, the Punjab and Haryana High Court issued a notice to the Punjab Government and PSPCL.

Manraj Grewal Sharma

Manraj Grewal Sharma is a senior journalist and the Resident Editor of The Indian Express in Chandigarh, where she leads the newspaper’s coverage of north India’s most politically and institutionally significant regions. From Punjab and Haryana to Himachal Pradesh and the Union Territory of Chandigarh, she oversees reporting at the intersection of governance, law, politics and society. She also reports on the diaspora, especially in Canada and the US. With a career spanning journalism across several countries, academia and international development, Manraj brings a rare depth of perspective to regional reporting. She is widely regarded as a leading chronicler of Punjab’s contemporary history and socio-political evolution, particularly its long shadow of militancy, federal tensions and identity politics. Her book, Dreams after Darkness, remains a definitive account of the militancy years and their enduring aftermath. Professional Background & Expertise A gold medalist in mass communication and a post-graduate in English literature, Manraj has a multifaceted career spanning journalism, academia, and international development. She was also awarded a fellowship by National Foundation of India and did several in-depth pieces on Manipur. Internationally, she has reported from Israel, US, UK, Myanmar, and Mauritius Her key focus areas include: Regional Politics, History, Agriculture, Diaspora, and Security. Of late, she has started focusing on Legal & Judicial Affairs: Much of her recent work involves reporting on high-stakes cases in the Punjab and Haryana High Court, ranging from environmental policy to civil rights. International Consulting: She previously served as a consulting editor for the Asia Pacific Adaptation Network and a publishing consultant for the Asian Development Bank (ADB) in Manila. Academia: For five years, she was the managing editor of Gender, Technology and Development, a peer-reviewed international journal at the Asian Institute of Technology, Bangkok. Recent Notable Articles (Late 2025) Her recent reportage focuses heavily on judicial interventions and regional governance: 1. Environment & Governance "‘NGT can’t test legality of policy’: HC hears challenge to Punjab’s ‘Green Habitat’ plan" (Dec 22, 2025): Covering a critical legal battle over whether the National Green Tribunal has the authority to strike down a state policy regularizing farmhouses on delisted forest land. "High court pulls up Punjab poll panel over audio clip probe" (Dec 10, 2025): Reporting on judicial concerns regarding the transparency and fairness of local body elections. 2. Legal Rights & Social Welfare "HC issues notice to Punjab, Haryana over delay in building old age homes" (Dec 22, 2025): Reporting on a contempt petition against top officials for failing to establish government-run homes for the elderly as promised in 2019. "Victims can appeal acquittals in sessions court without seeking special leave" (Dec 19, 2025): Highlighting a significant procedural shift in criminal law following a Supreme Court ruling. "HC upholds benefits for Punjab FCI officer acquitted in 20-year-old bribery case" (Dec 19, 2025): A report on the concept of "honourable acquittal" and its impact on employee benefits. 3. Human Rights & Identity "As Punjab denies parole to MP Amritpal Singh, HC asks it to submit ‘foundational material’" (Dec 1, 2025): Covering the legal proceedings regarding the radical preacher and sitting MP's request to attend Parliament. "Protecting life paramount: HC backs Muslim woman in live-in after verbal divorce" (Nov 6, 2025): Analyzing judicial protections for personal liberty in the context of traditional practices. Signature Beats Manraj is recognized for her ability to decode complex judicial rulings and relate them to the everyday lives of citizens. Whether it is a 30-year-old land battle in Fazilka or the political implications of Kangana Ranaut’s candidacy in Mandi, her writing provides deep historical and regional context. Contact @grewal_sharma on X manrajgrewalsharma on Instagram ... Read More