Row over PPA probe: Justice Narasimha quits after SC censures

Hyderabad: In a significant development, Justice L Narasimha Reddy, who was heading the commission of inquiry constituted by the Telangana Government to probe the alleged irregularities in the power purchase agreements by the previous BRS government, informed the Supreme Court that he was stepping down from the commission.

The Supreme Court, during a hearing on the petition on Tuesday, observed that the probe panel headed by the retired judge lacked procedural fairness. Soon after this, Senior Advocate Gopal Sankaranarayanan, appearing for the former judge, conveyed the latter’s intention to resign from the commission to a three-judge bench headed by Chief Justice of India DY Chandrachud.

During the hearing, the CJI had orally observed, “There are observations in the press note which seem to indicate that the judge has expressed an opinion on the case.” The state government informed the apex court that a new commission would be constituted by next Monday.

The former Justice later stated that the press briefing was done by the commission as the media reports were not reflecting the real progress of the proceedings of the commission. The press conference was to end that imaginary reporting. He said, “The last thing for a judge or for that matter, a former judge, to assert would be that he is not biased. The day such necessity arises the very office would lose its sheen.”

“As a gesture to uphold the dignity of the judicial fraternity, I hereby express my view that I do not intend to continue as the commission,” he noted.

He said that about 95% of the report was ready but now that he is no longer the chairman, he would dump it. He said contrary to the allegations made against him by the former CM K Chandasekhar Rao, he did not summon him. “No notices were issued, only letters were written to him seeking his version,” he said.

It all began with Reddy holding a press conference on June 12 stating that irregularities were committed and that his responsibility was to calculate the loss to the state exchequer. KCR took strong exception to the commission’s press statements and filed a petition in the court appealing to remove Justice Narasimha Reddy from the commission.

Chief Justice DY Chandrachud on Monday commented that it would have been fine if it was just to indicate the modalities followed, like issuing notices. He observed that had he not made certain observations on the merits of the issue we would have left it at that. “The problem is that there appear observations on the merits. Let us also face it, it doesn’t bind anybody but the inquiry report affects the reputation of a person,” Chief Justice DY Chandrachud said.

“We are giving you (state government) the opportunity to replace the judge in the commission of inquiry, appoint some other judge. Because there has to be an impression you know... justice must be seen to be done. He is the Commissioner of Inquiry, he has expressed his view on merit,” he added.

The Commission was appointed in March 2024 to probe alleged irregularities in the 1,000 MW Power Purchase Agreement (PPA) with the Chhattisgarh Power Distribution Company Ltd and in the execution of 4×270 MW Bhadradri Thermal Power Station (BTPS) and 5×800 MW Yadadri Thermal Power Station (YTPS).