SC dismisses Adani Gas’ plea against awarding of CGD to Gujarat Gas

29 Sep 2021 CW Team

The company was also fined Rs 10 lakh by a bench of Justices U U Lalit, S R Bhat, and Hrishikesh Roy for acting naively about rules and regulations despite using the same rules to win gas distribution network projects in the Ahmedabad municipal area.

Adani claimed that Regulation 18 of the PNGRB (Authorising Entities to Lay, Build, Operate, or Expand City or Local Natural Gas Distribution Networks) Regulations, 2008, according to Adani, breached Articles 14 and 19(1)(g) of the Indian Constitution, as well as Section 16 of the PNGRB Act, 2006.

The authorisation of Gujarat Gas to lay and maintain a gas distribution network was also challenged by Adani. Gujarat Gas had won the authorisation in a PNGRB auction.

In exchange for Adani submitting an indemnity to the Board, the Board had given Adani provisional approval to carry out certain capital works in the Ahmedabad area, including the disputed areas of Sanand, Bavla, and Dholka.

The board granted provisional approval to Adani's CGD network in Ahmedabad city and the Daskroi area on 4th February 2013, excluding 18 Hindustan Petroleum Corporation Ltd CNG stations.

This provisional authorisation did not cover the disputed areas. Despite certain areas being excluded, Adani accepted the grant of authorisation on 9th December 2013, despite protests.

Adani filed a petition in the Gujarat High Court, asking the court to revoke Gujarat Gas' authorisation, questioning the exclusion of the disputed areas and the Board's interpretation of Regulation 18 under the PNGRB Act.

Adani also claimed that it was entitled to be treated as an entity with deemed authorisation under Section 16 of the PNGRB Act.

The HC dismissed Adani's petition, claiming that it did not believe it was appropriate to challenge the legality of Regulation 18, under which it was granted authorisation in the Khurja area of Uttar Pradesh.

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Also read: CCI nods 26% stake acquisition in ONGC Tripura Power Company by GAIL

The Supreme Court has dismissed Adani Gas’ plea against the decision of the Petroleum and Natural Gas Regulatory Board (PNGRB) to hand over the city natural gas distribution (CGD) network for Sanand, Bavla and Dholka to Gujarat Gas. The company was also fined Rs 10 lakh by a bench of Justices U U Lalit, S R Bhat, and Hrishikesh Roy for acting naively about rules and regulations despite using the same rules to win gas distribution network projects in the Ahmedabad municipal area. Adani claimed that Regulation 18 of the PNGRB (Authorising Entities to Lay, Build, Operate, or Expand City or Local Natural Gas Distribution Networks) Regulations, 2008, according to Adani, breached Articles 14 and 19(1)(g) of the Indian Constitution, as well as Section 16 of the PNGRB Act, 2006. The authorisation of Gujarat Gas to lay and maintain a gas distribution network was also challenged by Adani. Gujarat Gas had won the authorisation in a PNGRB auction. In exchange for Adani submitting an indemnity to the Board, the Board had given Adani provisional approval to carry out certain capital works in the Ahmedabad area, including the disputed areas of Sanand, Bavla, and Dholka. The board granted provisional approval to Adani's CGD network in Ahmedabad city and the Daskroi area on 4th February 2013, excluding 18 Hindustan Petroleum Corporation Ltd CNG stations. This provisional authorisation did not cover the disputed areas. Despite certain areas being excluded, Adani accepted the grant of authorisation on 9th December 2013, despite protests. Adani filed a petition in the Gujarat High Court, asking the court to revoke Gujarat Gas' authorisation, questioning the exclusion of the disputed areas and the Board's interpretation of Regulation 18 under the PNGRB Act. Adani also claimed that it was entitled to be treated as an entity with deemed authorisation under Section 16 of the PNGRB Act. The HC dismissed Adani's petition, claiming that it did not believe it was appropriate to challenge the legality of Regulation 18, under which it was granted authorisation in the Khurja area of Uttar Pradesh. Image SourceAlso read: CCI nods 26% stake acquisition in ONGC Tripura Power Company by GAIL

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