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Congress leader files suit against Gujarat government

Gandhinagar, July 16 (IANS) Shaktisinh Gohil, leader of the Congress in the Gujarat assembly, Friday filed a suit in the state high court challenging the legality in the state government granting ‘undue benefits’ to a private company SWAN Energy Ltd. (SEL).

Swan Energy has been offered 49 percent share holding in the state public sector controlled GSPC Pipavav Power Company Ltd. (GPPC) for a meagre sum of Rs.381 crore.

Pointing out that this stood out as a case where a private company through private negotiations, has been given 49 percent share holding capacity in a huge power project, namely, GSPC Pipavav Power Company Ltd. (GPPC), and additionally provisioned to earn 70 per cent carbon credits though it has only 49 percent shareholding, causing great loss to the public exchequer.

The PIL demanded setting aside of the agreement and a stay on its implementation and execution pending a final decision.

It wanted the share holding in GPPC to be given following a transparent competitive bidding rather than the ‘clandestine manner’ in which the process had been carried out. The PIL also sought directions to ensure that the maximum carbon credits go to the Gujarat government in the new agreement signed after the present agreement is annulled.

The PIL sought a probe by an independent agency into the affair and prosecution of those involved in ‘committing clandestine and criminal acts of cheating resulting in huge loss to the state’.

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