High Voltage Tension: Delhi Government's Legal Battle Over Rs 27,000 Crore Power Dues

The Delhi government is exploring legal options following a Supreme Court order to pay Rs 27,000 crore in dues to the city's discoms. Blame is cast between former AAP and current BJP governments over financial mismanagement and potential electricity rate hikes to cover regulatory assets.

The Delhi government finds itself embroiled in a legal conundrum after the Supreme Court directed the payment of substantial dues amounting to Rs 27,000 crore to the city's three discoms. This financial burden stems from accumulated regulatory assets, prompting the government to seek legal counsel before filing a suitable plea.

Power Minister Ashish Sood attributed the skyrocketing regulatory assets to the previous AAP government's alleged corruption and mismanagement, which led to an increase from Rs 8,000 crore in 2014 to the current Rs 27,000 crore. In the face of looming financial challenges, accusations fly between AAP and BJP over the planned handling of the escalated dues.

The Aam Aadmi Party accused the BJP of searching for reasons to raise electricity rates, pointing out their track record in Punjab. Meanwhile, the Delhi government remains dissatisfied with the evaluation of these regulatory assets by the power regulator and is committed to safeguarding electricity consumers' interests amid rising financial pressures.

(With inputs from agencies.)