NEW DELHI, DECEMBER 13: Supreme Court today quashed a Karnataka High Court judgement ordering a CBI probe into alleged kickback paid for commissioning of the controversial 1,000 MW Mangalore power project, promoted jointly by US major Cogentrix and Hong Kong based China Light & Power Company.Cogentrix had announced last week its withdrawal from the Rs 3,948 crore fast track power project, in which it had 60 per cent equity, citing delays in Government clearances and legal wrangles. A division bench comprising Justices S Saghir Ahmad and S Rajendra Babu today allowed the appeal filed by Karnataka Government, Karnataka Electricity Board and China Light & Power Company while setting aside the High Court order.The Supreme Court judgement, which was reserved in January this year, dismissed the application filed by Arun Kumar Aggarwal on whose PIL the High Court had ordered CBI probe. The project was given techno economic clearance by the Central Electricity Authority in July 1996 and power purchase agreement was executed between Mangalore Power Company and Karnataka Power Transmission Corporation in November 1997.Based on this the tariff for power from the project was to be Rs 2.25 per unit.Meanwhile, Cogentrix said the Supreme Court's verdict ``vindicated'' its stand that allegations against it were baseless. It however, said any reconsideration of its decision to pull out from the 1,000 MW project would have to be taken by the boards of Cogentrix Energy Inc and China Light & Power Company, joint promoters of the Rs 3,968 crore project.``Today's verdict vindicates what we have said from the very beginning, that the allegations against us are frivolous and baseless,'' Managing Director of Mangalore Power Company Rom Somers told PTI.Asked whether Cogentrix would re-consider its decision on the pull out, Somers said he would to inform the board at US and Hong Kong about the Supreme Court order: ``Any decision on re-considering on the pull out from the project would have to be taken by our boards in US and Hong Kong,'' Somers said.
