SC upholds OERC order to cancel licenses of 3 distributors of Reliance Infra Power


Bhubaneswar: In a major setback to Reliance Infra, the Supreme Court today upheld the orders of Odisha Electricity Regulatory Commission (OERC) to cancel licenses of three power distribution companies NesCo, WesCo and SouthCo hearing their plea to withdraw the decision.

The three companies controlled by Anil Ambani-led Reliance Energy.

The Odisha power regulator on March 4, 2015 had revoked licenses of the companies following bad performance and for purportedly disobeying its orders on improvement in power supply efficiency, as per the Section 19 of the Electricity Act.

The OERC then temporarily handed over the management of the companies to GridCo (formerly Grid Corporation of Odisha), which reportedly holds a 49 per cent stake in the companies.

It had later appointed Gridco chairman and managing director as the administrator of the distribution companies.

Challenging the decision of OERC, the companies had requested the Electricity Tribunal to revoke the cancellation orders.

However, the Tribunal rejected their appeal, following which the companies moved to the Supreme Court.

Hearing the case the Supreme Court today upheld the orders of the OERC and rejected the three power distribution companies’ appeal over violation of the supply pact with the state.

The Supreme Court rejected the appeal of Reliance Infra today. OERC had cancelled their licenses on March 2015 following which an appeal was made before the electricity tribunal, where it was rejected. They moved to the Supreme Court following the rejection but the apex court went in favour of OERC and rejected their appeal, said Ritwik Panda, OERC counsel.

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