adani gas: SC rejects Adani Gas’ plea challenging regulatory authorisation for Gujarat Gas to operate in 3 locations
The Petroleum and Natural Gas Regulatory Board’s authorisation for setting up city gas distribution networks in Sanand, Bavla and Dholka areas was upheld by the top court.
The court also held that the Adani group company should bear Rs 10 lakh in costs payable to the union of India.
“We hereby inform you that the Honourable Supreme Court of India has pronounced judgement in case of Ahmedabad Rural authorization, which has been decided in favour of Gujarat Gas Limited. We will examine the detailed judgement and take appropriate actions,” Gujarat Gas said in a notification to stock exchanges on Tuesday.
In 2018, the Gujarat High Court had rejected Adani Gas’ plea seeking authorisation from PNGRB for establishing and operating city gas distribution networks in these locations.
The court had then upheld the authorisation given to Gujarat Gas for the locations.
Adani Gas then went to challenge the order before the apex court.
The Supreme Court said in its order on Tuesday, “Having regard to the above findings and conclusions, the appeals fail and are dismissed. In the circumstances, Adani shall bear the costs quantified @ ?10 lakhs, payable to the Union of India.”
The court said that the PNGRB regulation under challenge was “neither arbitrary nor ultra vires.”
Adani Gas had challenged the authorization saying it was “deemed authorised” for establishing an operating city gas distribution network for the ‘Ahmedabad Geographical Area’ which included Sanand, Bavla, and Dholka.
It had also challenged the PNGRB decision to invite bids for these areas in which Gujarat Gas was subsequently selected.