Holding

The Court held that a High Powered Committee should be constituted to investigate the allegations of electricity theft, loss of coal wagons, and related administrative lapses, and to recommend appropriate remedial and monetary measures.

Summary

The Supreme Court entertained a public interest writ petition under Article 32 concerning large‑scale electricity theft, loss of coal wagons and related malpractices by the Uttar Pradesh State Electricity Board (UPSEB). After hearing counsel for the petitioners, the State, UPSEB and an amicus curiae, the Court ordered the constitution of a High Powered Committee comprising former officials and an expert auditor to investigate the allegations, recommend monetary recoveries and reparatory measures, and suggest systems for metering, energy auditing and loss prevention. The Committee was empowered to summon parties, examine documents, and receive assistance from the CBI, the Central Electricity Authority, the State Government and the Union of India. The expenses of the Committee were directed to be borne by UPSEB and the State of Uttar Pradesh, and the Committee was required to submit its report within six months. The petition remains pending, with the Court retaining jurisdiction to address any difficulties through the amicus curiae.

Issues considered

Whether the Supreme Court can entertain a public interest petition under Article 32 of the Constitution concerning alleged systemic electricity theft and loss of coal wagons by a State electricity board.
Whether the Court may direct the appointment of a High Powered Committee to investigate administrative failures and recommend remedial measures.
Whether the Court can order the parties, including the Union of India, the State Government and the UPSEB, to provide assistance and bear the costs of such an investigation.

Legislation cited

Constitution of Indias. Article 32

Subjects

electricity theftpublic interest litigationArticle 32high powered committeeinvestigationenergy auditingloss of coal wagonsaccountabilityUttar Pradesh State Electricity Board

Judgment

SURESH CHANDRA SHARMA A
v.
CHAIRMAN, UPSEB AND ORS.

JANUARY 13, 1998

[J.S. VERMA, CJ!., S.C. AGRAWAL AND S.P. BHARUCHA, JJ.] B

Electricity :

Electricity-Theft by consumers-Writ petition in public interest-
Appointment of High Power Committee investigate into areas enumerated in C
the order-Committee also to recommend reparatory measures and submit its
report within six months-Public Interest Litigation-Constitution of lndia-
Article 32.

ORIGINAL JURISDICTION: Writ Petition (C) No. 79of1997.
D
(Under Article 32 of the Constitution of India.)

Gopal Subramaniam, (AC), R.D. Upadhyay, Madan Sharma and K.R.
Ajit M. Singh, the Petitioner.

N.M. Ghatate, Pradeep Misra, Ms. Niti Dixit, T. Mahipal and R.B. E
Mishra for the Respondents.

The following Order of the Cou.rt was delivered :

This present Public Interest Petition contains five areas which need to F
be investigated by a High Powered Committee:-

I. Large scale theft of electricity by consumers of all categories (in
particular, HY I and HV2) with or without connivance of officials of the
Electricity Board and ways and means to dater it (together with extent of
responsibility in cases of theft where no connivance is proved.) G

2. An instrumentation system for metering supply of electricity with
·-...:' appropriate checks and balances through computerised software so that theft
of the electricity is minimised and proper recordings are always available.

3. Energy Auditing and, in particular, proper systems of Auditing and H
93
94 SUPREME COURT REPORTS [1998] 1 S.C.R.

A metering electricity which is generated and supplied throughout the stage
irrespective of the sector of area to which it is supplied.

4. Political and high level interference in the independent functioning
of the Board and accountability.

B 5. Loss of coal wagons purported to be in transit of the Uttar Pradesh
State Electricity Board (UPSEB) including ways and means to deter it -
accounting and responsibility.

After hearing learned counsel for the State, the UPSEB and the Amicus
C Curiae, we are satisfied that at this stage an order as indicated hereafter is
required to be made. Accordingly, we order as under:

We appoint a High Powered Committee consisting of the following
persons for the purpose of dealing with the above areas and also with the
allegations contained in the Writ Petition and the various supplementary
D affidavits.

I. Mr. S. Venkatnarayanan (!AS) retd. formerly Chairman, National
Power Finance Corporation.

2. Mr. Prakash Singh formerly Director General of Police (UP) and
E former Director General, BSF.

3.· Mr. R.N.Srivastava, Chainnan, Central Electricity Authority

4. Dr. EAS Sarma (!AS) Secretry, Ministry of Power, Government of
F India.

5. An expert auditor to be no1hinated by the Comptroller and Auditor
General oflndia.

Mr. B.B. Sharma, fonnerly, Member-Secretary, UPSEB is requested to
G function as the Secretary of the High Powered Committee.

We direct the High Powered Committee, as appointed above, to enquire
into the allegations and to identify those who are· responsible for such
defaults. The Committee will also make recommendations in respect of monetary
H recoveries to be made due to stolen energy or otherwise. The Committee
S.C. SHARMA v. CHAIRMAN, UPSEB 95
likewise will also go into the question of loss of coal wagons and all enquiry A
reports which have been conducted in relation thereto would be made available
to the High Powered Committee by the Central Government, State Government
and the Public Sector Undertakings concerned. The Committee shall identify
those responsible in the event of loss or unauthorised diversion of coal
wagons proved. As far as designing of an instrumentation system as well as B
the energy auditing system is concerned the UPSEB and the Department of
Power, State Government of UP are directed to supply all necessary and
,
/
material papers to the Committee on request from the Committee.

The Government of UP, the UPSEB and the Central Government, the
Central Electricity Authority and the various agencies of the State Government c
shall render all assistance as and when required by the Committee. The
Committee shall exercise all powers required for proper discovery of relevant
facts in relation to the above matters. The High Powered Committee would
be at liberty to summon parties and record their statements and receive such
evidence as is necessary for the purpose of completing its task. D

Two officers, one of the rank of a DIG and the other of the rank of SP
to be made available by the Director, Central Bureau of Investigation will
assist the Committee. The Committee, whenever necessary, may consult
additional experts for enabling it to make its recommendations.
E
The High Powered Committee will submit its interim report on the merits
of the various allegations contained in the Writ Petition, affidavits and any
other material.

The Committee will also recommend appropriated reparatory measures F
(monetary and otherwise) in respect of the each one of the instances.

The Union of India, the UPSEB, the Central Electricity Authority and
the State ofU.P. are directed to render all possible assistance in the functioning
and workiJ!g of the Committee. The State ofU.P. and the UPSEB shall make G
available all necessary support and amenities for the functioning. of the
Committee. The Committee would be entitled to ask for and inspect whenever
necessary relevant documents/information/apparatus. The expenses incurred
by the Committee shall be borne by the UPSEB and the State of UP. The
Committee shall submit its report within six months form today. H
96 SUPREME COURT REPORTS [1998] I S.C.R.
•
A In case of any difficulty in the functioning of the Committee, the Amicus
Curiae shall be at liberty to approach the Court.

R.P. Petition is still pending.