IGL versus PNGRB: Delhi HC says final hearing next Thursday

Indraprastha Gas moved the Delhi High Court against the regulator's move to order a steep cut in gas prices in Delhi, reports CNBC-TV18’s Nayantara Rai.

They have actually heard the matter for almost 45 minutes and then decided to have the final argument next Thursday which is April 19. During the course of the hearing Ashok Desai, representing IGL, said that the company’s stock fell by nearly 35% yesterday and with that retrospective effect of the order where customers would have to be refunded.
It will mean the company will have to pay as much as Rs 1,500 crore which is substantially higher than their net worth, they could be wiped out and then the company may actually have to apply to the Board of Industrial & Financial Restructuring (BIFR).
The Petroleum and Natural Gas Regulatory Board's (PNGRB) council actually hit back and said that their net worth is not their problem; the reduction in tariff is in public interest and the interest of the consumer. But the important clarification that is coming in is from PNGRB council AS Chandiok is that the only component that they are reducing is the transportation cost, they are not touching the selling price and are not touching the cost of the gas.
It is at this juncture that the high court – the two member bench actually made an observation and asked Chandiok to clarify that incase IGL were to cut the transportation tariff would it stop the company to try and increase the final selling price to make up for that as a form of a compensation to which Chandiok’s PNGRB council said – no as PNGRB has no jurisdiction over that.
The IGL council then went on to say to get rid of this retrospective effect of the order, retrospective is such an effect that even before the PNGRB came into force or came in, the Act was passed by Parliament etc. What the judges have decided is that the final argument will take place on April 19. PNGRB says it does not want a refund right now.