New Delhi: The Delhi High court on Thursday held that Petroleum and Natural Gas Regulatory Board (PNGRB) has no authority to grant licences for laying city gas distribution network and CNG retailing.
A division bench comprising Chief Justice AP Shah and Justice Manmohan said that since section 16 of the PNGRB Act, which authorises the Board to grant licences, has not been notified by the Centre, it has no power to do so.
"We are of the opinion that in the absence of section 16 PNGRB has no authority," the bench said.
The court also held that the Chairman can not delegate powers to member (infrastructure) and his secretary and directed the Board to take any decision with the consent of all members.
Over allegations of corruption and favouritism against member infrastructure B S Negi, the court has directed the government to take an appropriate decision over its investigation process and inform it within eight weeks.
The court also observed that PNGRB has not considered the application of Indraprastha Gas Limited (IGL), distributor for licence to retail CNG and piped natural gas in Ghaziabad, and invited application from other parties without even taking a proper decision on it.
"It is a violation of principles of natural justice," said the court said staying the two public notices issued by the PNGRB in this regard.
The Court directed PNGRB to decide afresh on IGL application with a full board hearing the matter.
PTI
