In yet another tussle between Delhi Lieutenant Governor Vinai Kumar Saxena and the AAP Government, the former has ordered removal of “Government nominees”, including AAP leader Jasmine Shah and Rajya Sabha MP ND Gupta’s son Naveen ND Gupta, from the board of private power distribution companies (discoms).
These members had allegedly acted in collusion with companies to bring them benefits of over `8,000 crore at the cost of exchequer.
Besides, Gupta, Shah, retired IAS officers AK Singh, Rashmi Krishnan, Umesh Tyagi and ex-DANIPS officer JS Deshwal have also been removed from the boards of private discoms. The Delhi BJP has demanded a CBI probe against the Government nominees who gave discoms benefits of over `8,000 crore at the cost of exchequer.
In an order, the LG said the Finance Secretary, the Power Secretary and MD of Delhi Transco would now represent the Government in the power discoms as per regular practice followed since Sheila Dikshit’s time as CM, when these discoms came into existence.
Meanwhile, the Department of Vigilance of Delhi Government has also issued show-cause notices to these nominees and sought explanation from them within seven days for undue benefit to discoms. The power department of the Delhi Government issued an order removing the four nominees on Friday, following directions from the LG. The LG’s directions for removal of the Government nominees came as an interim measure since the issue was referred by him for approval of the President which is still pending.
“Whereas, LG considered the matter of illegal appointment of four private persons, namely, Jasmine Shah, Naveen D Gupta, Umesh Tyagi and JS Deswal as Government nominees on behalf of Delhi Power Company Limited (DPCL) on the Board of Directors of DISCOMs pursuant to the Cabinet decision no. 2755 dated 03.10.2019, vide order dated 01.11.2019, which was issued in gross violation of provisions of Rule 23(iv) of Transaction of Business of the Government of National Capital Territory of Delhi Rules, 1993 (ToBR, 1993),” the LG said in his order.
The action triggered a fresh confrontation between the Raj Niwas and the AAP Government, with the latter terming the move “illegal, unconstitutional and contrary to the procedures” and that the LG “does not have the power to issue such orders”.
“The LG’s orders removing Shah and Gupta from the Board of DISCOMs is illegal and unconstitutional. The LG does not have the power to issue such orders. Only the elected Government has powers to issue orders on the subject of electricity. The LG has made a complete mockery of all the Supreme Court orders and the Constitution. He is openly going around saying that SC orders are not binding on him,” the party said.
Demanding a CBI probe, Delhi BJP working president Virendra Sachdeva has said the BJP has been continuously saying there is a nexus between the Delhi Government and private power companies who are partners in power discoms and now it is getting proved. “Due to this nexus, the Delhi Government has allowed private power companies huge extra income through payment of subsidies and by allowing them to collect different surcharges,” he said.
Meanwhile, the LG in his file notings observed “the matter being urgent and sensitive in nature warrants expeditious action, under Rule 51 of the TBR’1993 read with Proviso to Article 239AA (4) of the Constitution, I direct that immediate action be taken to replace these four private persons with senior Government officers as Government nominees...Pending decision of President of India.”
“Had the Cabinet discussed in detail the implications of nomination of private persons on the boards of dicoms, the government might not have faced the allegations of collusion of these private persons with the discoms resulting in purported loss of Rs 8683.67 crore to the government exchequer,” said LG noting. The alleged loss was on account of lowering of late payment surcharge (LPSC) rates from 18 per cent to 12 per cent.
“I am not in agreement with views recorded by the Cabinet, owing to the fact that there are huge obvious and apparent complications/ implications of nominating private persons on the Boards of discom,” noted the LG.
The Delhi Government owns 49 per cent stake in the discoms. Senior officers used to serve on the boards of the discoms earlier, but the Kejriwal Government started nominating politically affiliated persons to them, the sources claimed.