The apex court said the appointment of Rajesh Awasthi as the UPSERC chairperson was in violation of law as he was joint president of JP Power Venture Ltd and his interest in that company would prejudicially affect his functions as the chief of the regulating body.
In concurrent but separate verdicts, a bench of justices K S Radhakrishanan and Dipak Misra said while recommending Awasthi's name as UPSERC chairperson, the selection committee overlooked Section 85 (5) of the Electricity Act, 2003 which says that a person should not have any financial or other interests in any other company which is likely to affect prejudicially his functions as chairperson.
"We are of the view that non-compliance of sub-section (5) of Section 85 of the Act will vitiate the entire selection process since it is intended to be followed before making the recommendation to the state government," Justice Radhakrishana said.
"I conclude that there has been total non-compliance of the statutory provision by the selection committee which makes the decision making process vulnerable warranting interference by the constitutional courts," Justice Misra said.
New Delhi: The appointment of Utter Pradesh State Electricity Regulatory Commission's (UPSERC) chairperson has been quashed by the Supreme Court on grounds of violation of rules in appointment.
First Published: Tuesday, October 23, 2012, 14:55