Delhi Electricity Regulatory Commission vs Forum of Regulators Central Electricity Regulatory Commission & Ors.
- Court
- Appellate Tribunal For Electricity
IN THE APPELLATE TRIBUNAL FOR ELECTRICITY
(Appellate Jurisdiction)
Review Petition No. 7 of 2026 &
Review Petition No. 8 of 2026 & IA No. 1047 of 2026
In
Original Petition No. 1 of 2025
th
Dated: 27 May, 2026
Present: Hon’ble Ms. Seema Gupta, Officiating Chairperson
Hon’ble Mr. Virender Bhat, Judicial Member
In the matter of:
Delhi Electricity Regulatory Commission
The Secretary
Viniyamak Bhawan, C-Block,
Shivalik, Malviya Nagar, Delhi – 110017
Email: [email protected] … Review Petitioner
Versus
1. The Secretary
Forum of Regulators
Central Electricity Regulatory Commission
th th
6 -8 Floors, World Trade Centre,
Nauroji Nagar, New Delhi – 110023
Email: [email protected]
2. The Secretary
Uttarakhand Electricity Regulatory Commission
Vidyut Niyamak Bhawan Near ISBT PO
Majra Dehradun, Uttarakhand – 248171
Email: [email protected]
3. The Secretary
Madhya Pradesh Electricity Regulatory Commission
th
5 Floor Metro Plaza,
Arera Colony Bittan Market,
Madhya Pradesh, Bhopal – 462016
Email: [email protected]
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R.P. Nos. 7 & 8 of 2026 Page 1 of 19
4. The Secretary
Chhattisgarh State Electricity Regulatory Commission
Raipur, Irrigation Colony, Shanti Nagar,
Raipur Chhattisgarh – 492001
Email: [email protected]
5. The Secretary
Kerala State Electricity Regulatory Commission
KPFC Bhavanam, C V Raman Pillai Road,
Vellayambalam,
Thiruvananthapuram, Kerala – 695010
Email: [email protected]
6. The Secretary
Maharashtra Electricity Regulatory Commission
World Trade Centre,
th
Centre No. 1, 13 Floor,
Cuffe Parade, Maharashtra – 400005
Email: [email protected]
7. The Secretary
Bihar Electricity Regulatory Commission
Ground Floor, Vidyut Bhawan-II,
BSEB Campus, J.L. Nehru Marg (Bailey Road),
Patna, Bihar – 800021
Email: [email protected]
8. The Secretary
Odisha Electricity Regulatory Commission
Bidyut Niyamak Bhawan Plot No. 4,
Chunokoili, Shailashree Vihar,
Chandrasekharpur, Bhubaneswar,
Odisha – 751021
Email: [email protected]
[email protected]
9. The Secretary
Punjab State Electricity Regulatory Commission
Site No. 3, Sector 18, Madhya Marg,
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R.P. Nos. 7 & 8 of 2026 Page 2 of 19
Chandigarh – 160018
Email: [email protected]
10. The Secretary
Karnataka Electricity Regulatory Commission
No. 16, C-1, Millers Tank Bund Road,
Yellappa Garden, Bed Area,
Vasanth Nagar, Bengaluru – 560052
Email: [email protected]
Also at:
The Secretary
Karnataka Electricity Regulatory Commission
th th
No. 9/2, 6 7 7 Floor,
Mahalaxmi Chambers,
M.G. Road, Bangalore, Karnataka – 560001
Email: [email protected]
11. The Secretary
Tamil Nadu Electricity Regulatory Commission
th
4 Floor, SIDCO Corporate Office Building,
Thiru Vi Ka Industrial Estate Guindy,
Chennai, Tamil Nadu – 600032
Email: [email protected]
12. The Secretary
Himachal Pradesh Electricity Regulatory Commission
Vidyut Aayog Bhawan, Block No. 37,
SDA Complex, Kasumpti,
Himachal Pradesh – 171009
Email: [email protected]
13. The Secretary
Uttar Pradesh Electricity Regulatory Commission
Vidyut Viniyamak Bhawan, Vibhuti Khand,
Gomti, Nagar, Uttar Pradesh – 226010
Email: [email protected]
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R.P. Nos. 7 & 8 of 2026 Page 3 of 19
14. The Secretary
Telangana State Electricity Regulatory Commission
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5 Floor, 11-4-660, Singarenu Bhavan,
Red Hills, Hyderabad,
Andhra Pradesh – 500004
Email: [email protected]
15. The Secretary
Haryana Electricity Regulatory Commission
Bays No. 33-36, Sector-4,
Haryana – 134112
Email: [email protected] & [email protected]
16. The Secretary
Gujarat Electricity Regulatory Commission
th
6 Floor GIFT One Road,
5-C Zone 5 Gift City,
Gandhinagar, Gujarat – 382355
Email: [email protected] & [email protected]
17. The Secretary
West Bengal Electricity Regulatory Commission
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Plot No. AH/5 (2 and 4 floor),
Premises No. MAR 16-1111,
Action Area 1A, New Town, Rajarhat,
Kolkata, West Bengal – 700163
Email: [email protected] & [email protected]
18. The Secretary
Andhra Pradesh Electricity Regulatory Commission
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4 Floor, 11-4-660,
Singareni Bhawan, Red Hills,
Khairathabad, Hyderabad,
Andhra Pradesh – 500004
Email: [email protected] & [email protected]
Also at:
The Secretary
Andhra Pradesh Electricity Regulatory Commission
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R.P. Nos. 7 & 8 of 2026 Page 4 of 19
Vidyut Niyantrana Bhawan, Adjacent to
220/132/33/11KV,
AP Carbides SS, Dinnedevarapadu Road,
Kurnool, Andhra Pradesh – 518002
Email: [email protected]
19. The Secretary
Rajasthan Electricity Regulatory Commission
Vidyut Niyamak Bhawan, Near Motor Garage,
Sahakar Marg, Rajasthan – 302001
Email: [email protected]
20. The Secretary
Joint Electricity Regulatory Commission
(For the State of Goa and Union Territories)
Andaman and Nicobar Islands,
Chandigarh, Dadra and Nagar Haveli,
Daman and Diu, Goa, Lakshadweep, Pondicherry
rd th
3 and 4 Floor, Plot No. 55-56, Phase IV,
Service Road, Udyog Vihar,
Sector 18 Gurugram, Haryana – 122015
Email: [email protected]
21. The Secretary
Assam Electricity Regulatory Commission
Bidyut Niyamak Bhawan, G.S. Rd, A.S.E.B.
Campus, Dwarandhar, Six Mile, Assam – 781022
Email: [email protected]
22. The Secretary
Nagaland Electricity Regulatory Commission
Upper Agri Colony, House No. 341,
Old MLA Hostel Complex,
Kohima, Nagaland – 797001
Email: [email protected]
23. The Secretary
Arunachal Pradesh State Electricity Regulatory Commission
nd
O.T. Building, 2 Floor,
Niti Vihar Market, T.T. Marg,
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R.P. Nos. 7 & 8 of 2026 Page 5 of 19
Itanagar, Arunachal Pradesh – 791111
Email: [email protected] & www.apserc.nic.in
24. The Secretary
Jharkhand State Electricity Regulatory Commission
New Police Line Road, Opposite to C.M.
House Kanke Road, Ranchi – 834008
Email: [email protected] & [email protected]
Also at:
The Secretary
Jharkhand State Electricity Regulatory Commission
st
1 Floor, Jharkhand State Housing board,
Old Building, Harmu Housing Colony, Ranchi – 834002
Email: [email protected]
25. The Secretary
Sikkim State Electricity Regulatory Commission
Deorali Behind Lekha Priksha Bhavan (AG Office),
P.O Tadong, Gangtok, Sikkim – 737102
Email: [email protected]
26. The Secretary
Meghalaya State Electricity Regulatory Commission
st
1 Floor, Front Block, Left Wing New
Administrative Bldg.,
Lower Lachumiere Shilong,
East Khasi Hills, District, Meghalaya – 793001
Email: [email protected]
27. The Secretary
Tripura Electricity Regulatory Commission
Bidyut Bhavan Complex, Bhutoria,
Banamalipur, Agartala, Tripura (West),
Tripura – 799001
Email: [email protected] &
[email protected]
28. The Secretary
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Joint Electricity Regulatory Commission
J and K and Ladakh
Railway Road, Ambedkar (Panama)
Chowk, Jammu & Kashmir – 180016
Email: [email protected] & [email protected]
29. The Secretary
Joint Electricity Regulatory Commission
(for the states of Manipur and Mizoram)
Aizawl Mizoram TBL Bhawan,
nd th
2 -5 Floor, E-18, Peters Street,
Khatla, Aizwal, Manipur – 796001
Email: [email protected]
30. The Secretary
Jammu and Kashmir
J & K State Electricity Regulatory Commission
J & K State Electricity Regulatory Commission
PDC Complex, Ashok Nagar,
Satwari, Jammu – 180003
Email: [email protected]
31. BSES Yamuna Power Ltd.
The Chief Executive Building,
Karkardooma
Shakti Kiran Building, Karkardooma,
Delhi – 110032
Email: [email protected]
32. BSES Rajdhani Power Ltd.
The Chief Executive Officer
BSES Bhawan, Nehru Place,
New Delhi – 110019
Email: [email protected]
33. Tata Power Delhi Distribution Limited
Through its Head Legal
NDPL House, Hudson Lines
Kingsway Camp, Delhi – 110009
Email: [email protected] ,
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R.P. Nos. 7 & 8 of 2026 Page 7 of 19
[email protected] … Respondent (s)
Counsel for the Petitioner(s) : B. P. Patil, Sr. Adv.
Abiha Zaidi
for Petitioner
Counsel for the
Respondent(s)
: Amit Kapur
Anupam Varma
Rahul Kinra
Aditya Ajay
Aditya Gupta
Girdhar Gopal Khattar
Adamya Ojha
Yash Srivastava
Mahima Kaur
for Res. 31 & 32
Nikunj Bhatnagar
Punyam Bhutani
Tanishka Khatana
Vedant Choudhary
Shri Venkatesh
Shryeshth Ramesh
Sharma
Kanika Chugh
Ashutosh Kumar
Srivastava
Suhael Buttan
Nihal Bhardwaj
Priya Darshini
Abhishek Nangia
Akash Lamba
Mohit Mansharamani
Siddharth Nigotia
Vineet Kumar
Shourya Vir Das
Surbhi Kapoor
Aashwyn Singh
Manu Tiwari
Kunal Veer Chopra
Aniket Kanhaua
Adarsh Singh
R Jatin Kattyar
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R.P. Nos. 7 & 8 of 2026 Page 8 of 19
Amol Rana
Ananya Dutta
Nuha Rahman
Drishti Rathi
Devishi Gupta
Nilesh Purohit
for Res. 33
ORDER
PER HON’BLE MR. VIRENDER BHAT, JUDICIAL MEMBER
Review Petition No. 7 of 2026
1. By way of this application, the Delhi Commission has sought
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Review of order dated 20 April, 2026 in the Original Petition No. 01
of 2025 whereby we had quashed the approval accorded by the Lt.
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Governor vide communication dated 5 March, 2026 to entrusting of
strict and intensive audit of Delhi Discoms by the Delhi Commission
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to CAG as per RA judgement dated 6 August, 2025 of the Hon’ble
Supreme Court and had directed the Commission to appoint a
chartered accountant within one week from the date of the order
with these specific direction to conclude the strict and intensive audit
of the Delhi Discoms within three months thereafter.
2. We have heard Mr. B.P. Patil, Learned Senior Counsel along
with Ms. Abiha Zaidi, Learned Counsel for the Commission.
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R.P. Nos. 7 & 8 of 2026 Page 9 of 19
3. Mr. B.P. Patil, Learned Senior Counsel has referred to the
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orders dated 11 February, 2026 and 26 September, 2025 passed
by this Tribunal in the original petition with regards to the Delhi
Commission to submit that this Tribunal, in these orders, had not
barred or declined the move of the Commission to conduct strict and
intensive audit of Delhi Discoms by CAG and also directed the
Commission to submit progressive report regarding such action
thereby permitting the Commission to get such audit conducted by
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CAG and, therefore, the order dated 20 April, 2026 upholding the
objection of Discoms to such audit and quashing the approval
accorded by the Lt. Governor to such audit suffers from manifest
error and therefore deserves to be reviewed on this aspect.
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4. The relevant portions of the orders dated 11 February, 2026
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and 26 September, 2025 , to which the Learned Senior Counsel
had referred, have been extracted in para No. 4 & 5 of the application
and we find it pertinent to extract those portions of these two orders
hereunder also :-
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Order dated 11 February, 2026
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R.P. Nos. 7 & 8 of 2026 Page 10 of 19
“While the submissions urged on behalf of the Delhi
Discoms that, in view of the judgment of the Delhi High
Court, an audit by the CAG is impermissible, cannot be
readily brushed aside, we see no reason to examine this
contention in the present proceedings, that too at this
stage when no auditor has as yet been appointed. While
we may not be understood to have held that the DERC
ought not to have the audit conducted by the CAG, we
wish to emphasize that appointment of an auditor does
not brook any further delay.”
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Order dated 26 September, 2025
“Regarding the steps taken to commence the intensive
audit, State Commission submitted that they have
approached the CAG to undertake this special audit and
assured that in any case of no response/ or refusal from
them, they shall initiate steps to appoint Auditor on their
own and shall make efforts to get the same completed by
31.03.2026. State Commission to inform the progress in
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R.P. Nos. 7 & 8 of 2026 Page 11 of 19
this regard to this Tribunal by way of a progress report
before the next date of hearing.”
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5. It is limpid that in the order dated 11 February, 2026, this
Tribunal observed that the objection of Delhi Discom that CAG audit
is impressible, cannot be readily brushed aside, but refrained from
examining this contention as no auditor had been appointed till that
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date by the Commission. In the subsequent order dated 26
September, 2025 this Tribunal has merely recorded the submission
on behalf of the Commission that they have approached CAG to
undertake the special audit of the Delhi Discoms and the assurance
that in case no response/or refusal from CAG, they shall initiate steps
to appoint auditors on their own.
6. Hence, there is nothing in these two orders to show or suggest
that this Tribunal approved the action of the Commission to entrust
the special audit of the Discoms to CAG, and thus, the interpretation
which is sought to be given on behalf of the Commission is absolutely
erroneous. Deriving of such conclusion by the Commission from
these two orders of this Tribunal appears to be patently fallacious and
pre-posterous.
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R.P. Nos. 7 & 8 of 2026 Page 12 of 19
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7. Further, relying upon the order dated 29 January, 2021
passed by the Hon’ble Supreme Court in Civil Appeal Nos. 226-227
of 2021 – Andhra Pradesh State Load Despatch Centre Vs. M/s KSK
Mahanadi Power Company Ltd. & Ors., it is argued by Learned Senior
Counsel for the Commission that this Tribunal was not competent to
decide dispute with regards to the entrustment of special audit of
Delhi Discoms to CAG in this petition under Section 121 of the
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Electricity Act, 2003, and, therefore, the order dated 20 April, 2026
suffers from manifest error on this account also. In this regard, it is to
be noted that these submissions were made during the hearing on
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20 April, 2026 also and have been noted as well as discussed in
paragraph Nos. 34 to 37 of the said order and, therefore, do not merit
any fresh consideration. We hasten to add that reliance on the order
of the Hon’ble Supreme Court in Civil Appeal Nos. 226 & 227 of 2021
in this regard is totally misplaced. In that case, the Company had filed
a petition before the Central Electricity Regulatory Commission but
during the pendency of the petition, this Tribunal took up the case and
decided it on merits on the ground that since no legal member had
been appointed to the Central Commission, the Central Commission
was unable to decide the petition and, therefore, this Tribunal will
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R.P. Nos. 7 & 8 of 2026 Page 13 of 19
have to do so itself. Such course of action adopted by this Tribunal
was held impermissible by the Hon’ble Supreme Court on the ground
that Section 121 does not give any power to the Tribunal to decide
any dispute pending before the regulatory Commissions and only
empowers this Tribunal to, after hearing the concerned Commission
as well as other interested parties, issue orders/instructions or
directions to the Commission for performance of its statutory
functions. That is not the case herein. No such dispute involving the
Delhi Discom is pending before the Commission. The Commission
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had, in pursuance to RA judgement dated 6 August, 2025 of the
Hon’ble Supreme Court proceeded to conduct special audit of Delhi
Discoms by CAG for which approval was accorded by the Lt.
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Governor vide communication dated 5 March, 2026 but objection
was raised by Delhi Discoms to such audit before this Tribunal. This
Tribunal has been monitoring the conducting of intensive audit of
discoms by the Regulatory Commissions throughout India in terms of
the said judgement of the Hon’ble Supreme Court. Therefore, we
have noted in para No. 36 of the order that it is implicit in the directions
of the Hon’ble Supreme Court to this Tribunal to monitor the directions
contained in paragraph No. 71 of the RA judgement that this Tribunal
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R.P. Nos. 7 & 8 of 2026 Page 14 of 19
must ensure that these directions are complied with by the Regulatory
Commissions in tune with relevant Rules/Regulations/Statutory
provisions. Once it is found that while complying with these directions,
Regulatory Commissions have contravened any Rules/
Regulations/Statutory provisions, this Tribunal is duty bound to
intervene and ensure that there is no violation of any such statutory
provisions in complying with the directions of the Hon’ble Supreme
Court. When this Tribunal found that the Delhi Commission, in
directing audit of Delhi Discoms by CAG, has contravened the
statutory provisions i.e. Section 21 of CAG Act, the Tribunal found it
not only difficult but unlawful to endorse such action of the
Commission as it would have been against the spirit of engrafting of
Section 121 of the Electricity Act. This Tribunal found it duty bound to
pass directions to ensure that the decisions of the Regulatory
Commission are in line with the relevant statutory provisions.
8. Hence, the contention on behalf of the Delhi Commission that
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the order dated 20 April, 2026 of this Tribunal in this original petition
suffers from any error on the face of the record appears to be only
figment of imagination of the Commission itself which is not borne out
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R.P. Nos. 7 & 8 of 2026 Page 15 of 19
from the meaningful perusal of the said order. The contentions are
absolutely fallacious and mis-conceived to say the least.
9. With respect to the prayer (b) in the application for grant of
minimum period of 45 days to the Commission to complete the
process of appointment of chartered accountant for conduct of strict
and intensive audit of Delhi Discoms, it is to be noted even though in
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the order dated 20 April, 2026 we had directed the Commission to
appoint a chartered accountant within one week from the date of that
order, no steps in this regard appear to have been taken by the
Commission till today during the period of one month which has
elapsed after the passing of that order. It is submitted that certain
requisite steps have to be followed in terms of Electricity Regulatory
Commission (Appointment of Consultants) Regulations, 2001 for
appointment of a chartered accountant which would require the
minimum period of 45 days. In case, the Commission had initiated
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such process immediately after the order dated 20 April, 2026 was
passed by this Tribunal, only 15 to 20 more days would have been
required for completing such mandatory process. It again appears to
us that the Commission is deliberately delaying the appointment of
chartered accountant for conducting the audit of Delhi Discoms as
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R.P. Nos. 7 & 8 of 2026 Page 16 of 19
directed by the Hon’ble Supreme Court in the RA judgement.
However, be that as it may, since as per the above noted Regulations,
45 days period would be required for completion of the process of a
chartered accountant, we find it appropriate to grant such period to
the Commission. We make it clear that no further extension of such
period shall be granted to the Commission in future.
10. With these observations/directions, the Review Petition stands
disposed of.
Review Petition No. 8 of 2026
11. By way of this petition, the Delhi Commission has sought
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review/recall/modification of the order dated 20 April, 2026 to the
extent it rejects the request of the Commission for commencing
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process of liquidation of regulatory assets w.e.f. 1 July, 2026. Further
direction of this Tribunal to commence process of liquidation of
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regulatory assets within three weeks from 20 April, 2026 is also
sought to be recalled/modified.
12. We note that the grounds on which review/recall/modification of
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the order dated 20 April, 2026 is sought by way of this petition have
already been considered in paragraph Nos. 43 and 44 of the said
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R.P. Nos. 7 & 8 of 2026 Page 17 of 19
order and have been repelled by the observations contained in
paragraph Nos. 48 & 49 of the order. Therefore, by way of the instant
petition, the Commission only seeks fresh consideration on these
contentions which is not permissible. There may be appropriate
remedies available to the Commission in case it is not satisfied with
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such directions passed by us in the order dated 20 April, 2026.
However, certainly the instant petition does not make out any ground
for review/recall/modification of the said order.
13. We are constrained to note that considering the statutory
procedure to be followed for issue of true-up order, as was conveyed
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to us during the hearing on 20 April, 2026, we had granted time to
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the Commission till 30 June, 2026 for passing true up order for
Financial Year 2023-24. We hope and expect that the said true up
order would be passed by the Commission on or before the said
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specified date. However, as we have noted in the order dated 20
April, 2026, there is no impediment as such in the way of the
Commission in commencing the process of liquidation of regulatory
assets of the Discoms. It cannot be gain said that such process
cannot be completed in one year or a couple of years. Keeping in
view the extent of regulatory assets which have tentatively been
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R.P. Nos. 7 & 8 of 2026 Page 18 of 19
quantified by the Commission itself as Rs.38,552/- crores, it would
take several years to liquidate the same in terms of Supreme Court
order. Therefore, it is in the interest of the consumers that the
Commission must commence such process at the earliest without
making any further excuses.
14. Considering that the period of three weeks for commencing of
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such process as fixed by us in the order dated 20 April, 2026 has
already lapsed, we direct the Commission to commence the process
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of liquidation of regulatory assets of the discoms w.e.f. 16 June, 2026
positively.
15. With these observations/directions, the review petition stands
disposed of.
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Pronounced in the open court on this 27 day of May, 2026.
(Virender Bhat) (Seema Gupta)
Judicial Member Officiating Chairperson
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REPORTABLE / NON REPORTABLE
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