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Torrent Chennai city gas licence valid, says SC
The Supreme Court has upheld award of city gas licence for Chennai to Torrent Gas, rejecting Adani Gas’ plea that the winner’s “unreasonably high bid” should have been rejected by the regulator. Torrent had won the licence to lay city gas distribution infrastructure in the Districts of Chennai and Tiruvallur in Tamil Nadu following a competitive bid organised in 2019 by Petroleum and Natural Gas Regulatory Board (PNGRB), the downstream regulator. “This authorisation by PNGRB was challenged by Adani Gas Limited on the ground that the bid of Torrent Gas was unreasonably high and PNGRB ought to have rejected the bid,” Torrent said in statement.
The court has rejected all contentions of Adani Gas and dismissed its appeal against the PNGRB’s award, as per the statement. Adani group declined comment for the story. In its judgement on February 17, the Supreme Court “has held that the power to determine the reasonability of the bids resides solely with the PNGRB by virtue of Clause 14.2 of the Bid Document and that PNGRB’s determination on reasonability was neither arbitrary nor violating the principles of natural justice,” as per the statement. The judgement will help begin work on laying city gas infrastructure in Chennai and Tiruvallur, Torrent said.
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