The Department of Vigilance (DoV) has  issued show cause notices to Naveen ND Gupta, former Vice Chairperson of the Dialogue and Development Commission Jasmine Shah, retired IAS officers AK Singh, Rashmi Krishnan, Umesh Tyagi and  ex DANIPS officer JS Deshwal, seeking explanations  for undue benefit extended to BSES Rajdhani Power Limited (BRPL) and BSES Yamuna Power Limited (BYPL),  by reducing rate of late payment surcharge.

The Vigilance Department  has asked them to reply to the show cause notices within seven days. According to the DoV, these people were nominee directors appointed by the Delhi Government, who did not protect the Government’s interest which led to the loss of exchequer to the tune of over Rs 8,683 crore.

This comes after  an inquiry report submitted by the Delhi Power Department and the Chief Secretary in light of a complaint on September 26, 2022. “According to the report, these Government nominees, in cahoots with the private nominees on the Board, facilitated a decision of BRPL and BYPL to unilaterally lower the interest rates on late payment surcharge (LPSC), that these discoms owed to DTL/PPCL/IGPCL, from 15-18 per cent to 12 per cent, thereby causing a loss of Rs 8,683.67 crore,” an official said, adding that the four nominees did not invoke their ‘veto rights’, in terms of Article VI of the Shareholders Agreement to block any such inappropriate proposal, which is detrimental to the State finances.

Earlier, Lieutenant Governor VK Saxena has directed the Chief Secretary to remove these private nominees appointed by the Arvind Kejriwal Government and ordered the Vigilance Department  to investigate the omission/commission noted on part of these private individuals acting as Government nominees for any possible quid pro quo. The Vigilance Department said in its notices that the Government nominee Directors on regular post should communicate and take advice from the department on regular basis and also sensitise the DISCOMs about the relevant Government guidelines but in case if the decision of DISCOMs are contrary to the Government policies, the Government nominee should-voice the concern of the Government and get his/her version recorded in the Minutes of the Board meeting and report the same to the Ministry/Department.

"Whether you have apprised DPCL and Power Department of Govt. NCT of Delhi about the agenda of the Board meetings and also the decision taken by the Board alongwith your comments. Whether you have given any timely feedback on decisions taken by the  company on various aspects relating to the above allegations or violations of DERC regulations. Whether any regular communication you have maintained with Power   Department with reference to the board meetings, you have attended," the Vigilance Department  said in its notices.

The notices further reads, "Whether you have raised any concern of the Government with respect to any issue. "Whether any of your dissent has been recorded or given immediately after circulation of board agenda on prior to the decision or post decision.Whether you have taken any benefit in the form of sitting fee/honorarium or any other services or you have got any near or dear employed in the DISCOMs, if so  details be provided”.

“Whether any of your immediate family member working in Delhi  Government either as a permanent employee or on contractual basis or on consultant basis or otherwise in any of the DISCOM or their sister company," it said.

In October last year, the L-G had directed the Chief Secretary to probe alleged irregularities in the power subsidy given by the Government.