In what comes as a significant setback to the Punjab government, the Punjab and Haryana High Court on Friday stayed the proposed transfer of any property owned by the Punjab State Power Corporation Limited (PSPCL). The interim relief came in a public interest litigation (PIL) that has been pending since January.
A division bench comprising Justice Ashwani Kumar Mishra and Justice Rohit Kapoor passed the order on an application filed by senior advocate Baltej Singh Sidhu. Sidhu sought urgent intervention to restrain the transfer of 50 acres of PSPCL land in Badungarh village. He submitted that the state government intended to transfer the land to the Punjab Urban Planning and Development Authority (PUDA) under its 80:20 policy, after which it would be auctioned in the open market.
According to the application, the land had originally been acquired from farmers for a public purpose, but remained unutilised. It is now proposed to be sold to raise funds, allegedly to finance government welfare schemes. The plea argues that such a move undermines the original public purpose for which the land was acquired.
The application forms part of a broader PIL filed by Rajbir Singh, which highlights PSPCL’s worsening financial condition. The petition alleges that large-scale defaults by various Punjab government departments, coupled with the state’s decision to monetise valuable public assets instead of recovering outstanding dues, have deepened the Corporation’s fiscal stress.
According to the petition, electricity dues owed by government departments stood at Rs 2,582.24 crore as of August 31, 2025. Additionally, unpaid power subsidies have reportedly crossed Rs 10,000 crore. The plea contends that while the government is a consumer like any other, it has failed to meet its statutory and financial obligations, compelling PSPCL to borrow heavily to meet routine expenses such as salaries, pensions and power procurement.
The petition further argues that instead of invoking Section 56 of the Electricity Act, 2003 — which allows recovery of arrears or disconnection of supply after due notice — PSPCL has been left burdened with mounting liabilities. Meanwhile, the state has proceeded with plans to dispose of land under the Optimum Use of Vacant Government Land Scheme.
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