The Supreme Court on Wednesday issued notice to the Centre on a petition challenging the legality of the power purchase agreement between Maharashtra State Electricity Board and the Enron-promoted Dabhol Power Corporation.

A three-judge Bench comprising Chief Justice R C Lahoti, Justice G P Mathur and Justice C K Thakker also issued notices to Enron, DPC, Maharashtra government and Central Electricity Regulatory Commission.

This order was passed on an application filed by CITU, which had alleged that though cheap power was promised earlier at Rs 2 per unit, it was later hiked to Rs 4.95 per unit.

The petition also questioned the manner in which the agreement was brought about and brought on record the events at various places across the globe regarding the liquidation proceedings of DPC promoter Enron Corporation.

The apex court had in 1997 admitted CITU's petition challenging a Bombay High Court order upholding the PPA and had issued notice to MSEB only on the role of government and its officials in signing the PPA.

Amicus curiae Rajeev Dhawan and R Venkataramani pleaded that in view of the current developments pertaining to Enron and DPC, the court should examine the matter in detail.

The $3 billion mega power project was set up in Maharashtra by Enron and its associates in 1996 after the signing of PPA with MSEB in 1993.

MSEB's refusal to pay higher price for power led to a series of litigations with DPC resulting in the latter closing its power generation since May 2001.