Bhubaneswar: In a big blow to Reliance Infra, the Supreme Court today upheld the orders of Orissa Electricity Regulatory Commission (OERC) to cancel licenses of three power distribution companies (discoms) NesCo, WesCo and SouthCo following their appeal to withdraw the decision.
The Odisha power regulator on March 4, 2015 had revoked licenses of the three companies controlled by Anil Ambani-led Reliance Energy following bad performance and for allegedly disobeying its orders on improvement in power supply efficiency, as per the Section 19 of the Electricity Act.
The OERC then temporarily handed the management of the companies to GridCo (formerly Grid Corporation of Odisha), which reportedly holds a 49 per cent stake in the companies.
It later appointed Gridco chairman and managing director as the administrator of the distribution companies.
Challenging the decision of OERC, the companies had urged the Electricity Tribunal to revoke the cancellation orders. After the Tribunal rejected their appeal, the companies moved the Supreme Court.
However, the Supreme Court today, going in favour of the OERC, upheld the orders and rejected the discoms’ appeal over violation of the supply pact with the state.
"The Supreme Court has rejected the appeal of Reliance Infra today. OERC had cancelled their licenses on March 2015 and an appeal was made before the electricity tribunal, where it got rejected. Following this, they moved the Supreme Court and the apex court went in favour of OERC and rejected their appeal," Ritwik Panda, OERC counsel said.