The Jharkhand High Court heard a Public Interest Litigation (PIL) alleging that violations of the Electricity Act by two private companies caused a loss of nearly Rs. 500 crores to the State Government. The division bench of Chief Justice Tarlok Singh Chauhan and Justice Rajesh Shankar granted additional time to both companies, Amalgam Steels & Power Limited and Amalgam Steels Private Limited to file their replies. The PIL was filed by Energy Watchdog, an organisation monitoring power sector transparency and compliance.
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Companies Accused of Illegal Electricity Transactions
According to the PIL, both firms, which are said to be sister companies, allegedly engaged in buying and selling power to each other in violation of the Electricity Act. The petitioner, represented by advocate Vipul Poddar, argued that such internal power trading was not only unlawful but also led to a substantial financial loss to the state exchequer. The estimated loss was pegged at around Rs. 500 crores, based on records of electricity generation and sale over several years.
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JBVNL Admitted Partial Financial Loss
The Jharkhand Bijli Vitran Nigam Limited (JBVNL), made a respondent in the case along with the State Government, had earlier submitted a written response to the court. In its affidavit, JBVNL acknowledged discrepancies in the company’s operations and estimated the financial impact at around Rs. 300 crores. The State Government’s counsel also indicated that an internal review is underway to assess the full extent of the alleged irregularities.
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Next Hearing on 17th November
After hearing submissions from all sides, the bench directed both companies to submit comprehensive affidavits responding to the allegations. The court said that the nature of the alleged transactions, if proven, represented a serious violation of the Electricity Act’s regulatory framework. The matter has been listed for the next hearing on 17th November 2025, when the replies from the companies and the State Government are expected to be examined.
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PIL Raised Concerns on Accountability in Power Sector
The PIL by Energy Watchdog has drawn attention to accountability gaps in Jharkhand’s power generation and distribution system. Experts said that the outcome of this case could set a precedent for stronger oversight of private operators in the State’s energy sector. The court’s intervention is being seen as a step toward ensuring transparency in public resources and compliance with the Electricity Act’s licensing norms.
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