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Cancellation of LOI of solar power plants

Writs filed with High Court challenging govt decision

GULAM RABBANI | November 27, 2024 00:00:00


At least 11 writ petitions have been filed with the High Court challenging the government decision not to proceed with the solar power plants awarded under "Quick Enhancement of Electricity and Energy Supply (Special Provision) Act 2010".

Joules Power Limited, an energy generating and supply company and also one of the writ petitioners, prayed to the High Court to stay the operation of the government notifications issued on November 14 and 18 cancelling the Letter of Intent issued in favour of the company.

Identical writs have also been filed with the High Court recently by ten more power plants.

A notification issued on November 14 this year said the government has decided that it will not construct any more power plant and process power purchase proposals under the "Quick Enhancement of Electricity and Energy Supply (Special Provision) Act 2010.

Joules Power Limited also prayed to the court to issue a rule seeking explanation from the government bodies concerned as to why the notification issued on November 14 directing cancellation of Letters of Intent already issued in favor of Power generating companies under "Quick Enhancement of Electricity and Energy Supply (Special Provision) Act 2010" including that issued in favour of the petitioner, without any objection justification, in violation of the principles of natural justice, shall not be declared illegal.

It also prayed to the court to issue a rule as to why the notifications issued on November 18 this year by Secretary of the Power Development Board cancelling the Letter of Intent issued in favour of the petitioner shall not be declared illegal.

Out of the 11 petitions, only one filed by Joules Power Limited was placed before a High Court bench on Tuesday for hearing.

However, the High Court bench of Justice Farah Mahbub and Justice Debasish Roy Chowdhury felt embarrassed to hold hearing on the petition as someone from the company tried to 'influence' the High Court bench over phone.

The presiding judge warned the concerned lawyer about the issue and dropped the matter from the cause-list. Now the writ petition will be sent to the Chief Justice and then Chief Justice will assign another bench for hold hearing on that petition.

"This petition should be summarily rejected with cost," commented the presiding judge during the hearing.

Lawyer Abdullah Mahmood Hasan told the FE that he was not aware who tried to influence that court.

Chamber of Senior Advocate Ahsanul Karim has filed at least 10 petitions challenging the government orders issued on November 18.

The companies are -- Dimla Solar Park Limited, JN Basil BD Solar Park Limited, Chakaria Wind Power Limited, Setabgonj Solar Power Limited, Orion Renewables Munshiganj Limited, Orion Renewables Mymensingh Limited, Energon Renewables (BD) Limited and others, Cassiopea Fashion Limited and others, Shatkhira Green Energy Limited and Engreen Engineering Limited and others.

According to the petitions, power projects have been duly approved by various government agencies, including the Land Inspection Committee formed by BPDB, Power Grid Company of Bangladesh (PGCB), Bangladesh Power Development Board, Ministry of Energy, Power and Mineral Resources, Department of Renewable Energy, Power Division, and the Cabinet Division of the Government.

And the Government now cannot act inconsistently or whimsically to the prejudice of petitioners' companies especially when the project was approved by other government bodies at an earlier point of time, also read the petitions.

Mr Ahsanul Karim claimed that the action of the government refusing to proceed with the LOI is without lawful authority.

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