 "JSPL to move 'appropriate forum' against recovery notice")
Jindal Steel and Power (JSPL) will move an ‘appropriate forum’ in connection with the notice served by the Chhattisgarh government for recovering alleged excess payment made against power purchased from the company.
“The company will be seeking redressal at the appropriate forum in respect of the demand notice of Rs 153.55 crore,” the company spokesperson said in a written statement issued here. The statement added that JSPL was surprised to receive the notice seeking refund of Rs 153.55 crore, along with interest pursuant to the tariff order dated June 12, 2014, passed by the Chhattisgarh State Electricity Regulatory Commission.
Chhattisgarh chief minister Raman Singh had informed in the state legislative assembly that JSPL was paid excess amount against the power purchased by the state-run Chhattisgarh State Power Distribution Company (CSPDCL). The state government had served notice to the company with the deadline of July 22, 2016, Singh added.
“The power supplied by JSPL and the payments made by CSPDCL was in accordance with the terms of the Power Purchase Agreements (PPAs),” the company said. It is pertinent to note that JSPL was not a party to the proceedings in which the tariff order, review order or the order passed by the tribunal was passed and the same are as such not binding on JSPL, it added.
The statement said the aforesaid orders do not direct JSPL to make payment to CSPDCL and without JSPL being a party to the issue, CSPDCL cannot rely on the same to make any demand against JSPL. “Therefore, the alleged import of the tariff order is not binding on JSPL and further any demand made on JSPL on the basis of the same is prima facie in violation of the principles of natural justice and thus, legally untenable,” the company said.
A JSPL spokesperson said they would be requesting CSPDCL to withdraw the notice.