Power procurement case: Telangana HC dismisses KCR’s plea to stay Justice Reddy Inquiry Commission

Hyderabad: Telangana High Court on Monday dismissed a petition filed by former chief minister K Chandrashekar Rao seeking a stay on a one-man commission probing power procurement by the previous BRS government.

The order was passed by a division bench of Chief Justice Alok Aradhe and Justice Jukanti Anil Kumar.

Details of the case

On June 28, the Telangana High Court allotted a number to the writ petition filed by former Chief Minister K.Chandrasekar Rao praying for staying one-man commission enquiring into the procurement of power from Chattisgarh and construction of Bhadradri Thermal Power Plant at Manuguru and Yadadri Thermal Plant at Damacherla.

The petition was listed before the division bench of Chief Justice Alok Aradhe and Justice Jukanti Anil Kumar for scrutiny as the registry had objected to the impeachment of Justice L. Narasimha Reddy (Retd), who is heading the Commission.

Aditya Sondi, senior counsel appearing for the petitioner, said Justice L. Narasimha Reddy, before conducting an inquiry and before giving an opportunity to KCR to put forth his contentions before the Commission has concluded that previous government had committed irregularities due to which the state exchequer suffered Rs . 250-300 crore lost. He said it is a biased decision and hence, L. Narasimha Reddy has been impleaded in a personal capacity.

Aditya Sondhi said Power Purchase Agreements between the Telangana and the Chhattisgarh governments were approved by the Electricity Regulatory Commission of both states. He said the ERC has already ratified the decision of the government. He said when such is the situation, how some Commission Chairman told the media that the KCR government purchased the power from Chattisgarh on a nomination basis and did not follow any procedure.

The Commission asked KCR to appear before it by June 15. However, before this, the Chairman gave a press conference.

Further, the senior counsel informed the court that the Chairman has already reached a conclusion and this opinion will be reflected in his final report and there will be nothing left later. Hence, the senior counsel sought a direction to the Commission, that the final report of the commission should not be submitted without the consent of the Court.

The information shared by Justice L. Narasimha Reddy is a direct assault on KCR’s character and conduct, which will haunt him for life, the senior counsel said.

The Commission gives its recommendations which are not enforceable. Whereas in this case, the Chairman has given a finding before allowing the petitioner to put forth his contention, he said.

KCR dissatisfied with the Commission's inquiry

Bharath Rashtra Samithi (BRS) president and former chief minister K Chandrashekhar Rao (KCR) refuted the Congress government's allegations and expressed his dissatisfaction with the retired judge's decision to lead Justice L Narasimha Reddy's Commission claiming it had no legal validity.

The Congress government appointed the Commission to investigate alleged irregularities in the power sector during the previous BRS government. On June 11, the Commission served notices to 25 officials and non-officials, including KCR, requesting a written explanation.

In a 12-page written response to the notice given by the Commission on the alleged irregularities in the electricity sector during the BRS government tenure, KCR found fault with the Commission for being prejudiced as apparent from the statements made in the vernacular media even while the probe was underway.

The BRS chief also expressed concerns about an impartial investigation into the potential anomalies. "Based on your pronouncements in vernacular media, it appears that you have already decided to write a report critical of the BRS government. There is no point in appearing in person to discuss various things. I humbly request that you voluntarily step down from the inquiry Commission," Chandrashekhar Rao said.

KCR's Reply to Commission

In his letter, the former chief minister outlined in detail the electricity situation in Telangana in 2014, providing facts and data to demonstrate how the BRS government solved the power issue. He recalled the electricity crisis that occurred during the State's bifurcation, which was 2,700 MW in size. Apart from that, Andhra Pradesh violated the rules by discontinuing power supply, resulting in an additional 1,500 MW power crisis, as well as a 900 MW deficit owing to a shortage of gas-based power generation. He added there was a total shortfall of approximately 5,000 MW.

The BRS government implemented many initiatives to improve the power situation, including a few changes. As a result, the State's installed electricity capacity was increased to 20,000 MW from around 7,778 MW, he explained. “All of this was accomplished by researching the methods of other state governments, complying with Central government regulations, and getting the required permits,” KCR said.