Supreme Court revives Enron-Dabhol project case

New Delhi: The Supreme Court on Thursday revived the two decades old Enron-Dabhol power project agreement case and asked the Maharashtra government as to what action it took on the Godbole committee report of 2001 finding several irregularities in the deal. The revival of this case is likely to have a huge impact in the ensuing polls in the state as several irregularities and corruption was alleged in the deal involved the then chief minister Sharad Pawar.

A three-Judge Bench of Chief Justice Ranjan Gogoi and Justices Dinesh Maheswari and Sanjiv Khanna rejected the plea of the counsel for Maharashtra that the case may be closed as it had become infructuous. The CJI told the State counsel “We are not accepting your request to close the case. Find out what action had been taken on Godbole report or what action is proposed to be taken.” The Bench also asked the state counsel to find out whether any of the members of the Committee would like to assist the court in this matter on the next date of hearing on March 13.

The Bench was hearing a special leave petition filed by Centre for Trade Union against a Bombay high court verdict rejecting its plea for a probe into the deal. The petitioner challenged the power project agreement entered into between the Maharashtra State Electricity Board and the Dabhol Power Company/Enron on 8th November 1993 to set up a 2550 MW station as part of the government’s fast track projects. The challenge to the power project agreement (“PPA”) was that it was concluded without proper clearance under the Indian Electricity (supply) Act and requisite clearance was not granted by CEA. It was also alleged that Enron had paid a bribe of about U.S. $ 20 million to the authorities in India for the purpose of obtaining the Dabhol Power Project contract.

Even as the matter was pending in the apex court, the State appointed Godbole panel to probe into the deal. The panel, which submitted its report in 2001 said, “the Committee has prima facie found infirmities in several decisions taken in respect of the Enron project at different points of time.” The report was critical of former Maharashtra CM Sharad Pawar (who was in Congress party then), the 13-day BJP-led Union government, which reworked the deal in 1996 and Shiv Sena supremo Balasaheb Thackeray.

The State also appointed a Commission of Inquiry headed by Justice (retired) Khurdukar and the fate of the inquiry is not known. Against this backdrop the apex court today asked the State counsel to inform the court on March 13 as to the action taken on the probe reports.