lieutenant-Governor Najeeb Jung on Wednesday set aside the appointment of Krishna Saini as chairperson of Delhi Electricity Regulatory Commission (DERC) which decides power tariff in the national Capital, on grounds of legal infirmities.
Saini, a former Indian Revenue Service (IRS) officer, was appointed by the Arvind Kejriwal Government in March this year and it is feared that the new development could further escalate confrontation between the two sides.
The lG’s office said Saini was appointed to the top post of DERC in March without approval of Jung as mandated under rules and procedures.
“In the given circumstances, the appointment of Chairperson, DERC has been declared as void, ab initio,” the lG’s office said in a statement. later talking to reporters, Jung said Saini’s appointment was quashed as it was “irregular”.
Also, Jung has directed the Government to initiate the process for selection of the chairperson of the DERC immediately, in accordance with law.
“As per Section 85, Electricity Act, 2003, the Selection Committee is to be constituted by the State Government. The power and functions of the State Government have been delegated to the lieutenant Governor vide government of India notification dated February 20, 2004.
“Further, the Council of Ministers appointed Saini as Chairperson, Delhi Electricity Regulatory Commission (DERC) without the approval of the l-G,” Jung’s office said in a statement.
Power experts said the lG’s decision will further delay the tariff fixation process and all other directives issued by the Government to the DERC under Section 108 of the Electricity Act without the approval of the l-G. The Government, which has time and again held the performance of the discoms as “atrocious”, had ordered the DERC to compensate consumers for unscheduled power cuts
The Delhi High Court, in its August 4 order, had also termed as illegal the appointment of nominee directors of the Delhi Government in the boards of the three discoms. After Delhi High Court judgement dated August 4, Raj Niwas has reportedly directed DERC to not issue any directions or orders till further orders by lieutenant Governor’s office. After that, Saini has not issued any orders.
While appointing Saini, the AAP Government had cited a Delhi High Court order of February 24 saying it was allowed permission to go ahead with his appointment. Saini had retired as Chief Commissioner of Income Tax in January. It is noted that over 150 people had applied for the two vacant posts (Chairman and a member), applications for which were opened by the Delhi Government on November 25 last year. Of these, Saini’s name was finalised.
DERC consists of a chairman and two members. A three-member selection committee comprising a retired HC judge, the chief secretary of Delhi and the chairman of Central Electricity Regulatory Commission screens candidates and forward the short-listed names to the government. There is a general impression that discoms - BSES Rajdhani and BSES Yamuna (51 per cent stakes in both companies are owned by the Anil Dhirubhai Ambani group) and Tata Power Delhi Distribution (in which Tata Power holds a 51-per cent stake) -- want their own person as DERC chairman so that they can easily increase the power tariffs.
The l-G and AAP Government have been at loggerheads over a range of issues including appointments and have even been fighting it out in court. The Delhi High Court had last month held that the l-G is the administrative head of Delhi following which the AAP Government had challenged the verdict in the Supreme Court.