Punjab High Court Extends Interim Stay on PSPCL Property Alienation
The Punjab and Haryana High Court has reinforced its protective stance regarding public assets by extending an interim stay on the proposed alienation of properties belonging to the Punjab State Power Corporation Limited (PSPCL). In a significant development, the court has also directed the Punjab government to submit a comprehensive, para-wise reply to a public interest litigation (PIL) that challenges this controversial move.
Financial Stress and Unpaid Dues at the Core
The PIL, filed in January by petitioner Rajbir Singh, brings to light the severe financial distress plaguing PSPCL. According to the petition, the power utility is grappling with unpaid electricity dues amounting to approximately Rs 2,582 crore from various state government departments. Furthermore, subsidy arrears exceed a staggering Rs 10,000 crore, painting a dire picture of the corporation's fiscal health.
Rajbir Singh argued that proceeding with the sale or transfer of public assets under such precarious financial conditions is not only unjustified but also poses a significant threat to PSPCL's long-term sustainability and operational capacity.
The Controversial Land Transfer Proposal
At the heart of this legal battle is a specific proposal to transfer nearly 50 acres of PSPCL land located in Badungar village, Patiala. This land was slated to be handed over to the Punjab Urban Planning and Development Authority (PUDA) under the Optimum Use of Vacant Government Land (OUVGL) scheme. The intended purpose was for auction and subsequent development, a move now halted by judicial intervention.
"The court on Friday asked the state government to file a para-wise reply on the matter related to the PIL. The interim stay over the sale or transfer of properties has been extended till the further hearing scheduled for March 13," stated petitioner Rajbir Singh, summarizing the court's directive.
Judicial Proceedings and Interim Protection
The legal proceedings saw a division bench of the high court initially pass an interim order a week ago, effectively restraining any sale or transfer of PSPCL properties until further notice. This interim protection was granted in response to the serious concerns raised in the petition, which were echoed by protests from sections of power sector employees who opposed the alienation of corporate assets.
During a subsequent hearing held on Friday, the bench firmly declined to vacate the stay. It also reportedly rejected preliminary objections raised by the state regarding the maintainability of the PIL. The court underscored that the matter involves significant public interest, emphasizing that PSPCL assets constitute public property held in trust for the people.
Court's Directives and Future Hearings
While addressing the preliminary objection, the bench clarified that the question of the PIL's maintainability would remain open for the state to argue in subsequent hearings. However, for the present, the court has mandated the Punjab government to file a detailed, para-wise reply. This reply must be comprehensive and supported by all relevant documents, providing clarity on PSPCL's current financial position and the underlying rationale for the proposed land transfer.
The court has ordered that the interim protection against the alienation of PSPCL properties will continue until the next hearing. The matter is now officially listed for further consideration on March 13, where the state's detailed reply will be scrutinized, and arguments will advance on this critical issue affecting public assets and corporate viability.
