Najeeb Jung sets aside govt’s selection of DERC chief

In another setback to the AAP government, lieutenant-governor Najeeb Jung scrapped the appointment of Krishna Saini as the chairman of Delhi Electricity Regulatory Commission on the grounds of legal infirmities. The L-G office said Mr Saini was appointed to the top post of Delhi Electricity Regulatory Commission (DERC) in March without approval of Mr Jung as mandated under rules and procedures.

“In the given circumstances, the appointment of chairperson, DERC, has been declared as void, ab initio,” the L-G office said in a statement. The L-G also directed the government to initiate the process for selection of the chairperson of the DERC immediately, in accordance with law.

Mr Saini, a former chief income tax commissioner, was appointed to head the regulator, which takes crucial decisions relating to power sector, including tariff, in March without Mr Jung’s approval. “As per Section 85, Electricity Act, 2003, the Selection Committee is to be constituted by the State Government. The power and functions of the State Government have been delegated to the L-G vide government of India notification dated February 20, 2004.

“Further, the council of ministers appointed Krishna Saini as chairperson, Delhi Electricity Regulatory Commission (DERC), without the approval of the lieutenant-governor,” Mr Jung’s office said in a statement.

It said as the Constitution of the selection committee as well as the appointment of DERC chairperson was done without putting up the matter with the L-G for his concurrence and the entire process has been “vitiated” right from the beginning and “suffers from serious legal infirmities”.

While appointing Mr Saini, the AAP government had cited a Delhi high court order of February 24 saying it was allowed permission to go-ahead with his appointment. Mr Saini had retired as chief commissioner of income tax in January.