Najeeb Jung cancels DERC chief's appointment by AAP government

NEW DELHI: Touching off another confrontation with the AAP government, LG Najeeb Jung set aside the appointment of Delhi Electricity Regulatory Commission (DERC) chairman Krishna Saini on Wednesday , saying it was done without consulting the LG and was thus legally infirm. This is the first action by Jung in the ongoing review of AAP government decisions in the past one and a half

years taken without the LG's consent. The review was initiated after the August 4 high court ruling that said the LG was Delhi's administrative head and all government decisions needed his approval. Saini's appointment was among the 400 files being examined by an LG appointed three-member panel for "infirmities and irregularities". Saini's dismissal has led to a crisis in DERC as all decisions, meetings and official documents in which he was involved will be halted. Any work done by Saini in the last six months as DERC chief would also be declared invalid.

Delhi is now unlikely to have any tariff revision this year which could set off a new wave of problems as discoms may appeal to the appellate tribunal.

The commission is working with one senior member, B P Singh, as a chairman will have to be appointed through a lengthy process. The post of another member lies vacant.

"The council of ministers (of Delhi government) had constituted a selection committee to select the chairperson and members of DERC without the approval of LG, Delhi, which is mandated as per rules... Further, the council of ministers appointed Krishna Saini as DERC chairperson without the approval of the LG," a statement from the LG office said.

"As the constitution of the selection committee as well as the appointment of the chairperson was done without putting up the matter to the LG... the entire process of appointment of DERC chairperson has been vitiated right from the beginning and suffers from se rious legal infirmities." It added that DERC was a statutory body , discharging important functions and "illegalities in the appointment of chairperson are bound to have legal and other repercussions."

"In the given circumstances, the appointment of chairperson, DERC has been declared as void, ab initio," the LG's office said, directing the elected government to initiate the selection process afresh.

When contacted by TOI, Saini declined to comment on the developments. A former IRS officer, Saini was appointed by the AAP government in March. He succeeded P D Sudhakar, who retired on January 29. Power minister Satyendar Jain had administered the oath of office to Saini, who was selected on the basis of the recommendation by a three-member panel.

TOI had earlier reported that Saini's appointment could be nixed as it violated the February 20, 2004 notification issued by the home ministry under Article 239 of the Constitution, read with provisions of Electricity Act 2003.

While all previous commission chairpersons--V K Sood, Berjinder Singh and Sudhakar--had been appointed as per due process which involved the consent of the LG, the AAP government had decided to bypass Jung completely in appointing Saini.