Punjab & Haryana High Court Questions Concentration of Power as IAS Officer Heads Both PSPCL and Transco; Seeks Clarification from State Government
The Punjab and Haryana High Court has expressed serious reservations over the consolidation of leadership roles within Punjab’s power sector, noting that a single IAS officer is currently serving as the head of both Punjab State Power Corporation Limited (PSPCL) and Punjab State Transmission Corporation Limited (Transco). Both entities are autonomous corporations intended to operate independently of government interference.
During the proceedings, Justice Harpreet Singh Brar asked the State Chief Secretary to explain how an IAS officer came to occupy the dual posts of Chairman-cum-Managing Director (CMD) of both PSPCL and Transco, while simultaneously functioning as the Principal Secretary (Power) to the Government of Punjab.
High Court Seeks Clarification on Dual Appointments
Justice Brar raised a pointed query: Are the CMD positions in PSPCL and Transco designated cadre posts for IAS officers? If not, the court demanded a detailed justification of the mechanism and administrative approvals through which IAS officers are being deputed to lead these autonomous power corporations.
These observations emerged while the court was hearing petitions filed against PSPCL and other respondents. Senior advocate Amit Jhanji, along with counsel Manu K. Bhandari and H.C. Arora, represented the petitioners, while advocate Gurnoor Singh Sethi argued on behalf of PSPCL.
Court Criticizes Mishandling of Personnel Transfer and Absorption
The Bench emphasized that the state government had a statutory responsibility to create a committee to supervise the transfer and absorption of employees from PSPCL to Transco.
However, the court noted that the State had “substantially failed” to implement the transfer scheme in a meaningful way and did not establish the required committee to oversee staffing-related matters.
As a result, employee transfers and absorptions were reportedly taking place in a discretionary manner, prompting concerns over potential nepotism or favoritism. The Bench also stressed that it had been more than 12 years since the unbundling of the Punjab State Electricity Board (PSEB), yet issues relating to personnel structure and permanent absorption continue to linger without resolution.
Context: The 2010 Unbundling of PSEB
The unbundling of PSEB in 2010 led to the creation of PSPCL and Transco. On April 16, 2010, the Punjab government notified the Punjab Power Sector Reforms Transfer Scheme, outlining the transfer of responsibilities, assets, liabilities, and staff from PSEB to the newly formed corporations.
Under the scheme, the State was entrusted with ensuring seamless transfer and permanent absorption of employees from PSPCL to Transco, along with establishing a structured oversight mechanism—responsibilities the court now believes have been neglected.
Justice Brar instructed the government to explain through an affidavit why no timeline was established for completing these transfers or for creating the mandatory supervisory committee.
Affidavits Filed by IAS Officer Raise Further Scrutiny
Affidavits were submitted by Ajoy Kumar Sinha, IAS, who currently holds three significant roles:
Chairman-cum-Managing Director of PSPCL,
Chairman-cum-Managing Director of Transco, and
Principal Secretary, Department of Power, Government of Punjab.
Justice Brar remarked that both PSPCL and Transco are autonomous entities meant to operate independently, yet “the same officer is simultaneously at the helm of both corporations while also serving as Principal Secretary to the State government.”
Given this concentration of authority, the court has directed the Chief Secretary to submit a comprehensive affidavit addressing the legality, rationale, and administrative justification behind these overlapping appointments.
