MIHAN INDUSTRIES ASSOCIATION Vs. MAHARASHTRA AIRPORT DEVELOPMENT CO. LTD
LAWS(ET)-2014-10-14
CENTRAL ELECTRICITY REGULATORY COMMISSION
Decided on October 27,2014

Mihan Industries Association Appellant
VERSUS
Maharashtra Airport Development Co. Ltd Respondents

JUDGEMENT

- (1.) MIHAN Industries Association (MIA), Nagpur has filed a Petition on 16 May, 2014 for directions regarding power supply to industries in the Multi -Modal International Hub Airport At Nagpur (MIHAN) Special Economic Zone (SEZ) area and related issues. The Petition cites various Sections of the Electricity Act (EA), 2003 and SEZ Rules read with relevant provisions of the MERC (Standards of Performance of Distribution Licensees, Period for Giving Supply and Determination of Compensation) Regulations, 2005, MERC (Consumer Grievance Redressal Forum (CGRF) and Electricity Ombudsman) Regulations, 2006, MERC (General Conditions of Distribution License) Regulations, 2006 and MERC (Conduct of Business ) Regulations, 2004.
(2.) The Petitioner's prayers are as follows: " 1) Allow the petition filed by the petitioner association. Direct the MADC to provide "uninterrupted power supply" to the industries in 2) MIHAN -SEZ as per mandate of section 42, 43, of EA 2003 read with section 5(A), 5(c) of SEZ Rules 2006. Direct the MADC to immediately give / restore the power supply "efficiently and 3) effectively" to those industries who have not opted to avail the power supply of MSEDCL as they were getting before the disconnection in interim u / s 94 (2) Direct the MADC and AMNEPL to implement the order passed by the Hon'ble 4) Commission in case no: -62/2014 in paragraph no: - 56(a) by exercising the powers u/s 23, 86, 92, 94, 129 in interim 5) Direct the MADC to procure the power from AMNEPL in order to supply it to the consumers or alternatively direct the MADC to procure the power from MSEDCL in order to supply it to consumers as per the orders passed on 06.05.2014 in case no: -62/2014 by this Hon'ble Commission in interim Hold and Declare that the "disconnection of power" made by MADC and 6) AMNEPL by way of letters dated 14.04.2014 is illegal in the eyes of the law and violates section 56 of EA 2003 Direct the MADC to appoint the "Grievance Redressal Mechanism" as per the 7) section 42(5), (6), (7) of EA 2003 read with regulation 3.1, 3.2, 3.3, 4, 6.1, 6.2, 10 of MERC (CGRF and EO) Regulations 2006 8) Direct the MADC AND AMNEPL to supply the power at the rate of Rs. 2.97 / per unit to the industries as per the contractual obligations by exercising the powers u/s 23, 86 (1) (b) of EA 2003 9) Hold and Declare that the MADC has violated the provisions of EA 2003 as stated in paragraph 26 of this petition and is guilty of "willful breach" of the orders passed by this Hon'ble Commission in case no: -16/11 and 62/2014. 10) Hold and Declare that the AMNEPL and MSEDCL is guilty of "willful breach" of the orders passed by this Hon'ble Commission in case no: - 62/2014. 11) Suspend the "distribution licence" of MADC u/s 24 of EA 2003 and appoint an "administrator" due to the deliberate and serious violations of EA 2003 12) Punish the Chairman, VC&MD, Directors and officials of MADC u/s 142, 146, 149 of EA 2003 13) Direct the MADC to furnish the information as stipulated u/s 59 (1)(a)(b), read with 13.1 of MERC (SOP) Regulations 2005 14) Fix the standards of Reliability achieved by MADC as per regulation 10.4 of MERC (SOP) Regulations 2005 15) Direct the Director General of Police (State CID) to investigate into the affairs and functioning of MADC and AMNEPL u/s 128 of EA 2003 16) Give any other directions which may be deemed fit in the facts and circumstances of the case in accordance with the provisions of the EA 2003."
(3.) The Petition states, inter alia, as follows: 3.1 MIA is an association of industries situated in the MIHAN SEZ. Maharashtra Airport Development Co. Ltd. (MADC) is a developer as per Section 2 (g) of the SEZ Act, 2005, and has been appointed as Distribution Licensee under Section 14 of the EA, 2003. Govt. of Maharashtra and MADC promoted the MIHAN SEZ for attracting industries, and assured uninterrupted power supply at the rate of Rs 2.97 per Unit along with other tax benefits. 3.3 MIA members have signed Lease Agreements with MADC. MADC and Abhijeet MADC Nagpur Energy Pvt. Ltd. (AMNEPL) are jointly responsible for supply of power to them. 3.4 On 30 April, 2014, AMNEPL arbitrarily disconnected the power supply of consumers in the MIHAN SEZ and thus violated Section 56 of the EA, 2003. Through this act, AMNEPL is abdicating its statutory and contractual obligations. 3.5 Since MADC has failed to create a grievance redressal mechanism, industries/consumers have no other forum to approach. Moreover, MADC and AMNEPL have supplied electricity to consumers without having the tariff approved by the Commission. 3.6 Interim relief under section 94 of the EA, 2003 is sought by way of direction to MADC to restore the power supply. ;


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