Govt to initiate legal action against PDD defaulters

Excelsior Correspondent
JAMMU, Feb 7: Further tightening noose around the defaulting consumers, the Government is going to initiate legal action against those who don’t liquidate their electricity arrears by February 11.
The legal action is being initiated against the defaulting consumers in addition to disconnection of their electricity connection for which public notices have already been issued by the Power Development Department (PDD).
A formal direction for initiating legal proceedings against the defaulting consumers was issued today by the Power Development Commissioner to the Chief Engineers of EM&RE Wing Jammu and Kashmir, authoritative sources informed the Excelsior.
The petition for recovery of arrears shall be filed before the Court of Electricity Magistrate under Section 50, 132 of Jammu and Kashmir Electricity Act 2010 and Section 8 of Jammu and Kashmir Electricity Duty Act 1963, sources added.
The direction for legal action has been issued four days ahead of the last date for liquidating the power arrears to avoid disconnection.
To ensure legal sanctity to its action against the defaulters, the PDD has already filed a cavet in the State High Court, sources said.
This is for the first time that the Government has issued instructions for initiating legal action against the defaulting consumers of PDD.
It is pertinent to mention here that on January 17, the Department had served two-week disconnection notice to the consumers of commercial category against whom the electricity bills have swelled to Rs 10 lakh or more. The list includes 130 consumers against whom the total arrears pending are Rs 54 crore. Again on January 30, the PDD came out with another list of consumers who have electricity arrears of Rs five lakh or more. They have also been served two-week disconnection notice.
The two lists include several prominent business establishments and individuals, such as Nawa-e-Subh, the headquarters of National Conference in Kashmir, Hari Niwas Palace, M/s Simula Software Solutions and Research Centre, owned by Finance Minister A R Rather’s son, Tramboo Joinery Mills, Tramboo Cement, Jewel Hotel and Restaurant, PNB, Amar Singh Club, Kargil House, Choudhary Motors, High Land Automobiles, BSNL, Reliance, Tawi Stone Crusher, Bahu Cold Storage, Airtel, Vodaphone, SKUAST, Dewan Modern Breweries, Jodhamal, Cadila Pharmaceuticals, Rajasthan Cement, LEIGHTON, AFCON etc.
The total electricity tariff arrears against consumers in Jammu and Kashmir are Rs 1160 crore. The Government Departments owe more than Rs 810 crore while the arrears against domestic and commercial connections consumers are Rs 350 crore.
Due to vast difference in revenue collection and power purchase, the State Government has been suffering losses worth hundreds of crores of rupees. In the year 2011-12, this loss was Rs 1900 crore and it is pegged to reach around Rs 2100 during the current financial year.
During the last financial year, a revenue of Rs 1203 crore was collected against the target of Rs 1600 crore whereas the State Government spent Rs 3100 crore for purchasing power.
To bridge the gap between revenue and purchasing cost of power, the State Government has launched the massive drive for collection of arrears.