The Punjab and Haryana High Court has taken cognizance of a serious allegation that Punjab government departments have failed to clear electricity dues amounting to a staggering Rs 2,600 crore, even as the state's power utility is pushed to sell its land to manage a financial crisis. Acting on a Public Interest Litigation (PIL), a bench comprising Chief Justice Sheel Nagu and Justice Neerja Kulwant Kalson issued a formal notice to the Punjab government and the Punjab State Power Corporation Limited (PSPCL).
Petitioner's Allegation: Selling Public Land to Fund Freebies
Senior Advocate Baltej Singh Sidhu, representing the petitioner and assisted by Himmat Singh Sidhu, presented a compelling case before the court. He cited internal PSPCL records revealing that various state departments had accumulated outstanding electricity bills of Rs 2,582 crore as of August 2025. Instead of directing these departments to clear their massive arrears, Sidhu argued, the state was opting to monetize PSPCL's land assets.
"This land is public property, acquired at public expense. Instead of paying the bills, they are selling the land of the power corporation," Sidhu contended. He submitted that the estimated value of land identified for sale was approximately Rs 2,700 crore, a figure almost matching the unpaid dues. The counsel further alleged that this exercise was aimed at generating funds for government freebies, such as the promised monthly stipend of Rs 1,100 for women, ahead of the upcoming Punjab Assembly elections.
Financial Burden on Consumers and Reliance on Documents
Sidhu warned the court that weakening PSPCL's financial health would ultimately burden ordinary consumers with higher tariffs. He referenced minutes of meetings held at Punjab Bhavan in October 2025, which discussed utilizing "unutilised and underutilised" government land, including PSPCL properties in Ludhiana and other areas. The petitioner also relied on land lists and media reports indicating PSPCL had cleared the transfer of 165 acres for auction, potentially raising nearly Rs 2,789 crore.
When the bench questioned the reliance on newspaper reports and asked if documents were sought under the RTI Act, Sidhu responded that the RTI process could cause delays, allowing the land sales to proceed in the interim. He emphasized the disparity in treatment, noting that under Section 56 of the Electricity Act, common consumers face disconnection for non-payment, while government departments continue to use power without settling bills.
State and PSPCL's Defense: Old Decisions and Proxy Litigation
Opposing the petition, the counsel for PSPCL and the state government offered a different narrative. They argued that the land transactions in question were not new initiatives but stemmed from decisions taken much earlier, between 2018 and 2020, following the closure of the Guru Nanak Dev Thermal Plant in Bathinda. They clarified that the distribution of this land between PSPCL and the Punjab Urban Planning & Development Authority (PUDA) had already been approved.
The state's counsel further characterized the PIL as being largely based on media reports, amounting to "proxy litigation." Despite these defenses, the court found sufficient grounds to issue a notice, seeking a formal response from the Punjab government and PSPCL. The case highlights the critical issue of inter-departmental dues and the sale of public assets to meet revenue shortfalls, with significant implications for the state's fiscal health and public utility services.
