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Rediff.com  » Business » Tata Power suppressed facts on Sasan: Govt tells HC

Tata Power suppressed facts on Sasan: Govt tells HC

January 09, 2009 12:59 IST

The government told the Delhi high court on Friday that Tata Power has suppressed facts in challenging the decision to allow diversion of coal from Sasan project by Reliance Power.

Hearing the petition by Tata Power against a decision of the Empowered Group of Ministers to allow use of coal from the captive mines for Sasan Ultra Mega Power Project to other projects, the Court did not give a stay and fixed the next date for hearing on February 24.

"There does not seem any reason to grant an interim stay at this stage," said a division bench comprising Justice Madan B Lokur and Justice Siddharth Mridul and did not issue any notices to the government and RPower, led by Anil Ambani.

"There has been serious suppression of facts by Tata Power. Its a serious issue and Tatas should not have approached the court on this," submitted solicitor general of India G A Vahanvati appearing on behalf of the government.

The court also asked the the Anil Ambani group company and government to file their affidavits within three weeks to which Tatas should give their rejoinder in the subsequent two weeks.

"Apart from the project, we are asking for level playing field and if the status quo is granted then it would not affect the project," Tata Power counsel L Nageshwar Rao said.

This was opposed by counsels appearing for the government and RPower.

On the issue of whether Tata Power was the bidder for Sasan UMPP, Rohatagi said it is an admitted fact that Tatas walked out of bidding process so there was no question of their being disqualified.

"No notice is needed at this stage. We would file our affidavit," said RPower's counsel, adding that Sasan UMPP is Rs 24,000-crore (Rs 240-billion) project and lots of international funding has been done.

"If the notice/stay is granted then it would affect the project," he said, adding that Reliance is executing another similar Rs 20,000-crore (Rs 200-billion) project at Chitrangi in Madhya Pradesh.

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