Telangana power deals: Justice Narasimha Reddy steps down as Commission of Inquiry after Supreme Court remarks

Telangana government today informed the Supreme Court that a new retired judge would be appointed as the Commission of Inquiry to look into the alleged irregularities in procurement of power from Chhattisgarh by the earlier Bharat Rashtra Samithi (BRS) government [Kalvakuntla Chandrashekhar Rao v State of Telangana and Ors]..The State took the decision to replace Justice (retired) L Narasimha Reddy, who was heading the Commission, after a bench of Chief Justice of India (CJI) DY Chandrachud with Justices JB Pardiwala and Manoj Misra objected to a press conference held by him.Following the top court's comments, Justice Reddy himself stepped down as Commission of Inquiry and informed about it in a letter to the top court.The Court was hearing a petition moved by former Chief Minister former Chief Minister K Chandrashekhar Rao (KCR) who had challenged the constitution of the inquiry commission. Justice Reddy in the press conference had made statements on merits of the matter, the Court said."Justice must be seen to be done," CJI Chandrachud said, while suggesting the State to replace the head of Commission of Inquiry..The Court also observed that a Commission's report may not be binding on the State but it can prejudice a person."If the judge did not make comments on the merits of the case it was fine. But he went into it. See his order is not binding. But the report by commission of inquiry prejudices the image of a person that is why notice to the person has been mandated," it said..Though Senior Advocate Abhishek Manu Singhvi, representing the State, attempted to defend Justice Reddy, he later told the Court that the government would replace him and appoint another judge as head of the Commission of Inquiry.In the afternoon, the top court was told that Justice Reddy has himself decided that he would step down.In the order, the Court said,"During the course of the hearing, Mr Gopal Sankaranarayanan, senior counsel appearing on behalf of the second and third respondents (the Commission of Inquiry and Mr Justice L Narasimha Reddy) has placed on the record a communication indicating that the third respondent does not intend to continue in pursuance of the notification appointing him as one-man Commission of Inquiry. In view of this development, Dr Abhishek Manu Singhvi, senior counsel appearing on behalf of the State of Telangana, states that the State Government would issue a notification shortly substituting Mr Justice L Narasimha Reddy with an alternate appointment.".The Telangana High Court had on July 1 dismissed a plea by KCR against the Commission of Inquiry. This led to the instant appeal before the apex court.The commission, headed by Justice (retired) L Narasimha Reddy, had also been tasked with inquiring into the correctness of setting up two thermal power stations in the State, namely the Bhadradri Thermal Power Station (BTPS) at Manuguru and Yadadri Thermal Power Station (YTPS) at Damaracherla.KCR challenged the validity of the commission on two grounds:- He contended that the commission lacks jurisdiction as the issue had already been adjudicated by the State Electricity Regulatory Commissions (SERC) of Chhattisgarh and Telangana.- He also alleged that the Commission was biased as Justice Reddy Reddy had pre-judged the issue even before he could file his reply..Senior Advocate Mukul Rohatgi, representing KCR, earlier argued that it was a plain case political vendetta. "Every time the government changes, there is a case against the former chief minister," Rohtagi submitted. The senior counsel also argued that responsibility cannot be fixed by a fact finding commission. "This was for approval of tariff. There was a power crisis and thus State bought power from State of Chhattisgarh ... the PPA needed approval from Chhattisgarh State Commission and Telangana State commission," Rohtagi added..Senior Advocate Shyam Divan with Advocates P Mohith Rao, J Venkat Sai, J Akshitha, Shaik Sohil Akthar, and Anshula Laroiya also represented KCR.Senior Advocate Siddharth Luthra also appeared for the State government.Advocates Sravan Kumar Karanam, Pranali Tayade, Shivani Vij, and Aniket Singh also appeared for retired Justice Reddy..[Read order]