The Vigilance Department of the Delhi government has recommended to the Appellate Tribunal for Electricity (APTEL) to take action against the then Additional Chief Secretary (Power), Ashok Kumar Singhal and Member of the Delhi Electricity Regulatory Commission (DERC), AK Ambasht for their nexus and gross complicity and non-adherence to the orders of APTEL and the directions of the Supreme Court.

In a report submitted to Justice Ramesh Ranganathan (Former Chief Justice of Uttarakhand High Court), Chairperson (APTEL), the Vigilance Department alleged serious malpractice in the DERC including in the appointment of Principal Advisor (Tariff) and recommended action against them. Singhal, who was DERC’s  Principal Adviser (tariff)  resigned from his post in March this year after the Delhi government Vigilance Department issued a memorandum  to him regarding alleged serious malpractice in the DERC in which it was pointed out that  his appointment as Principal Advisor (Tariff) was in violation of all rules and regulations. The inquiry was prompted by concerns regarding DERC's alleged failure to adhere to various orders and principles governing tariff determination.

According to report, DERC's decision to allow Regulatory Assets to accumulate instead of addressing them, as well as the violation of prescribed limits for cross-subsidization of different consumer categories, have raised alarm. These actions are deemed inconsistent with the Tariff Policy, 2016, and APTEL's previous judgments, which emphasized timely tariff determination and the recovery of Regulatory Assets within a specified timeframe.

The report flagged instances of misrule, maladministration, non-adherence to judicial pronouncements, not following the tariff policy, allowing cross subsidy against the norms,

Non implementation of the judgment of Supreme Court  and the letter of Ministry of Power was the resultant factor of nexus between the Office of Minister (Power), DERC and Power Department Officials (the then Additional Chief Secretary). This nexus is corroborated by post retirement rehabilitation of Delhi government officials, according to the report.

“The Power Department has not objected for such arrangement. After superannuation of Additional Chief Secretary (Power), he was appointed as RERA Chief, Punjab which amounts to quid pro quo,” the report said.

“Singhal, is an example in this regard, he was earlier in the Personal Branch of  Power Minister who was facilitated to be appointed as Member in DERC in connivance with Power Department Officials. It is not desirable to appoint the Personal Staff to independent body like DERC. He was appointed by virtue of his alleged closeness and his admittedly working in the Office of Minister (Power), Satyender Jain,” the report said.

After Singhal’s appointment as Member Advisor (Tariff), he had started receiving pay and perks as per the scale of Executive Director (Tariff) contrary to the advertisement.

The report said DERC has not examined the issue legally and was totally biased in selecting Singhal  as Principal Advisor (Tariff), DERC after he demitted the office as Member, DERC.

The post of Principal Advisor (Tariff), DERC is a lower post to that of the Member (DERC) and DERC had erred in appointing him as Principal Advisor (Tariff), DERC after his demitting the office as “Member”, DERC and also after crossing the age limit of 65 years. He is barred to take such assignment at least for two years as per Section 89 (5) of the Delhi Electricity Act, 2003, the report stressed.