Suo motu Petition No. 127/2011. Case: In Re: Indian Energy Exchange Ltd. Vs. Central Electricity Regulatory Commission
| Case Number | Suo motu Petition No. 127/2011 |
| Judges | Pramod Deo, Chairperson, S. Jayaraman, V.S. Verma and Deena Dayalan, Members |
| Issue | Electricity Act |
| Judgement Date | June 06, 2011 |
| Court | Central Electricity Regulatory Commission |
Order:
1. The Commission by its order dated 3.6.2010 in Petition No. 26/2010 (suo motu) directed the Respondent as under:
20. We direct the Respondent No. 1 to stop the practice of the clients depositing the money in the Settlement Funds Accounts of the Members-Facilitators with immediate effect as this is in the violation of Power Market Regulations, 2010. As regards the practice followed from 25.12.2010 till date, the First Respondent has submitted that the Members-Facilitators have not exceeded the limit of the deposits made by the clients and under no circumstances these members have extended any credit facility to any of the clients. We direct that the Secretary of the Commission shall arrange to get a special audit carried out into the accounts of Respondent No. 1 within a period of one month by a firm of Chartered Accountants. Respondent No. 1 is directed to provide the relevant record and cause the Members-Facilitators to allow access to their records for audit. Any instance of non-cooperation by Respondent No. 1 or any of its facilitator-members will be construed as contravention of the directions of the Commission by Respondent No. 1 and will be dealt with sternly.
2. Subsequently, the Respondent filed Interlocutory Application (I.A. No. 25/2010) praying for extension of time for implementation of the above directions issued vide order dated 3.6.2010. After examining the submissions of the Respondent including the steps taken to comply with the directions of the Commission, the Commission by its order dated 15.7.2010, directed as under:
In view of the above, we direct the applicant exchange to establish and demonstrate within three working days on the basis of documentary evidence that our order dated 3.6.2010 has been complied with in letter and spirit in relation to the working of the fourth member
3. The Respondent filed Appeal No. 154/2010 before the Appellate Tribunal for Electricity ('the Tribunal') challenging the above orders dated 3.6.2010 and 15.7.2010. The Appellate Tribunal by its judgment dated 28.3.2011 dismissed the said appeal, thereby confirming the orders of the Commission dated 3.6.2010 and 15.7.2010 respectively. The summary of findings of the Appellate Tribunal is extracted below:
42. SUMMARY OF OUR FINDINGS.
(i) The para 16 of the order dated 24.12.2009 passed by the Central Commission gives positive mandate that the Facilitator Members can do only 3 types of activities mentioned in (a), (b) and (c) of the...
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