' Discoms didn't submit genuine documents'

Delhi's power regulator has accused Reliance backed discoms, BSES Yamuna and Rajdhani, of "misrepresenting facts". One instance which has been challenged by BSES is that in 2004-05, BRPL and BYPL bought Rs 1233 crore worth of equipment from REL but DERC procured VAT receipts which showed REL's bill of materials for what it sold was much lower Rs 731 crore. DERC argued taht a 68% margin for REL amounted to ripping off DElhi's power consumers.

According to senior power officials, the trannsaction with REL could well be the most brazen atempt to fleece power consumers of Delhi. " A distribution company purchase its machinery from a sister company of the overall group to which they both belong at hugely inflated price with a profit margin of 68% and tried to pass on this entire cost to the consumers," said a senior official. The controversial issue was first discovered by DERC in 204 and the commission alleged taht the discom had committed a fraud and initiated an enquiry. The discom stuck to its stand that the transaction was done through competitive bidding and it had not favoured its sister company.

DERC has accuised the Reliance discoms of hidding facts and submitted some documents that were"not genuine to support this " manipulated transaction".The appellete's (BSES) atempt to prove that the work awarded to REL wsa for 'erection, testing and commissioning' is in vain and there is clear evidence to the contrary. It is therefore prayed that these documents should be rejected outright and should not be permited to be relied upon by the Appellent. It is also prayed taht court may consider initiating such action against the appelent for atemting to mislead the court ." reads the affidavit submitted by DERC. Delhi government has also expressed consern over the issue of 'mismanagedfunds' as it could affect consumer tariff. Discom BSES had insisted that the contract was given to REL through competitive bidding and EPC (ercetion, testing and commissioning )was also involved.DERC , however, didnot accept their claims and saidBSES could not provude any evidence to support their claim.

Source: timesgroup.com