Adani Gas Ltd has received a major setback from the Supreme Court. Adani Gas Limited challenged the auction process for the supply of PNG and CNG gas distribution in three areas of Ahmedabad district in the Supreme Court, which was dismissed by the court on Tuesday. The auction was held for gas distribution in Sanand, Bavla and Dholka in Ahmedabad.
Along with this, the Supreme Court has also upheld the authority given by the Petroleum and Natural Gas Regulatory Board (PNGRB) to Gujarat Gas Limited to set up and operate the city gas distribution network in these areas. Apart from this, the Supreme Court has also imposed a fine of Rs 10 lakh on Adani Gas Limited.
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Earlier in 2018, the Gujarat High Court had also dismissed Adani Gas’s plea challenging the auction for the supply of PNG and CNG gas in three areas of Ahmedbagh. The auction was conducted by PNGRB in 2016, in which Adani Gas was defeated by state-owned Gujarat Gas.
Prior to the introduction of the PNGRB Act in 2006, the Gujarat government had allowed Adani Gas to distribute gas in Ahmedabad district. However, the government had put a condition that this approval can be withdrawn if any law comes in this regard in future.
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According to section 16 of the PNGRB Act, if the company does not have the approval of the Central Government to continue its operations in any area, then it will have to take the permission of PNGRB. Under this rule, Adani Gas had approached PNGRB in 2013 seeking approval to build gas distribution infrastructure in the entire Ahmedabad district.
However, PNGRB, while approving Adani gas, excluded Sanand, Bavla and Dholka areas of Ahmedabad. Later PNGRB invited bids for gas distribution in these areas in 2016 in which Gujarat Gas emerged as the winner and Adani Gas lost.
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Adani Gas then moved the Gujarat High Court challenging the auction process and PNGRB’s decision to exclude three areas. However, first the High Court and now the Supreme Court has also rejected the petition of Adani Gas in this matter.
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