PIL on Sikkim Urja disinvestment: Sixth hearing held, next in two weeks

The Public Interest Litigation (PIL) filed by MK Subba against the alleged disinvestment of Teesta Urja Limited, now renamed Sikkim Urja Limited, had its sixth hearing today. 

The next hearing is scheduled after a two-week interval.

Subba’s PIL challenges the Sikkim government’s decision to sell a 60.08 per cent stake in Sikkim Urja Limited to Greenko Enterprises Pvt. Ltd. 

The petition raises concerns over financial transparency and environmental accountability regarding the transaction.

During the hearing, arguments focused on the implications of the disinvestment, particularly its impact on Sikkim’s strategic hydropower assets and revenue generation. 

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Subba’s legal team emphasized the need for greater scrutiny in the deal, questioning whether due diligence was followed in transferring majority ownership to a private entity.

The Sikkim government, however, has defended its decision, arguing that the move aligns with long-term economic sustainability and efficient management of hydropower resources.

The PIL, filed by MK Subba, targets the February 3, 2024 cabinet decision to divest 60.08% of Sikkim Urja Limited to Greenko Enterprises Pvt. Ltd. At its core, the lawsuit questions the disinvestment's legitimacy by highlighting significant procedural and environmental red flags.

Key allegations include critical lapses in financial and environmental due diligence. The petitioner argues that the disinvestment proceeded without mandatory statutory audits and comprehensive post-disaster impact assessments following the devastating Glacial Lake Outburst Flood (GLOF) on October 3-4, 2024.