SC Cautions Power Corp. Not To Burden Ordinary Consumer

SC Cautions Power Corp. Not To Burden Ordinary Consumer 1/18/2009 The Supreme Court has cautioned power corporations to discourage formation of cartels so that electricity charges do not go up unnecessarily burdening the ordinary consumer. A bench comprising Justices S B Sinha and Cyriac Joseph while acquitting the Managing Director of the Maharashtra State Power Generation Company Ltd (MAHAGENCO), a Public Sector Undertaking owned by the Maharashtra government noted, ‘We are distressed to see that MAHAGENCO has been encouraging formation of a cartel and thus allowing the rate of transportation of coal to go high up. Unless a power generating company takes all measures to cut down such malpractices, the generation cost of electricity is bound to go high and ultimately the same would be passed on to the consumer of electricity.’ A coal transportation company BSN Joshi & Sons Ltd had filed a contempt petition against Managing Director, MAHAGENCO Ajoy Mehta and another officer of MAHAGENCO for defying the orders of the Supreme Court. The contract for transportation of coal was awarded to a cartel inspite of the fact that the rate offered by the petitioner company for transportation of coal was the lowest. The apex court has accepted the apology tendered by the alleged contemnors for the time being. UNI

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