Supreme Court allows Adani to submit bids for city gas distribution network in Jaipur, Udaipur

Adani had appealed against the Rajasthan HC order that held that the firm did not have

authorisation from the Centre to continue work in the two cities

The Supreme Court on Monday allowed Adani Gas to submit bids for the development of City Gas

Distribution (CGD) network in Jaipur and Udaipur.

Seeking stay on the public notice of March 31, Adani’s senior counsel AM Singhvi argued that the

Rajasthan government was “bound by the principle of legitimate expectation and promissory

estoppel”, and its actions of issuing the public notice to invite bids “is illegal, contrary and bad in

law”.

A bench headed by Justice Madan Lokur allowed submission of bids without prejudice to Adani’s

rights and contentions in the appeal pending before it. It also posted the matter for final hearing in

September.

However, the government counsel said less than 25% pipeline has been laid down by Adani and its

deemed authorisation has also been rejected.

Adani had appealed against the Rajasthan HC’s April 2015 order that held that the company did not

have the authorisation from the Central government to continue work in the two cities.

The company had challenged the vires of Regulation 18 of the PNGRB (Authorising Entities to Lay,

Build, Operate or Expand City Local Natural Gas Distribution Networks) Regulations, 2008 as being

contrary to and violative of the PNGRB Act, 2006. The appeal is pending before the apex court,

which had earlier issued notice to the Centre, the Rajasthan government, and others.

The dispute arose after the state government in May 2011 withdrew the NOC granted by it for laying

down the gas network pipeline in the two cities. This was pursuant to PNGRB directing Adani to stop

the work in October 2007, the application stated, adding that it had already laid approximately 85-

km pipeline in both the cities.

The withdrawal of the NOC was challenged by Adani before the HC which dismissed its plea.

According to the company, while acting in good faith on the strength of the NOC, it had invested

huge sums of money and efforts in order to develop infrastructure for Udaipur and Jaipur in an

expeditious and a time-bound matter.

NGS INDIA