CHANDIGARH, Feb 21 — Punjab and Haryana High Court has prohibited the Punjab State Power Corporation Limited (PSPCL) from selling or transferring its properties. The directive specifically addressed an application seeking to stop the proposed sale of 50 acres of land in Patiala district.
The legal challenge arose after claims surfaced that the power corporation was planning to alienate valuable assets to manage a liquidity crisis. Counsel for the petitioner argued that the state, acting as a consumer, has crippled the utility’s finances by failing to clear dues totaling more than Rs 2,582 crore.
“Till the next date fixed in the matter, none of the properties of PSPCL would be alienated,” the bench declared. The court has scheduled the next hearing for February 24 to further evaluate the situation.
The petitioner, Rajbir Singh, through his legal team, affirmed that PSPCL should be directed to recover the defaulted amounts along with interest instead of selling public property. It was stated that rather than utilizing enforcement powers under the Electricity Act, the corporation has been compelled to borrow funds for routine expenditures.
Additional Solicitor-General Satya Pal Jain appeared for the Union of India during the proceedings. The High Court had earlier taken cognisance of the matter, noting that the massive unpaid bills from government offices were creating a systemic risk to the state’s power infrastructure.
