The Supreme Court on Tuesday dismissed a plea by Adani Gas Ltd, excluding it from supplying gas distribution rights in three areas of Ahmedabad district and granting the same to state-owned Gujarat Gas Ltd.
A bench of Justices U U Lalit, S Ravindra Bhat and Hrishikesh Roy rejected AGL’s contention that Regulation 18 of the Petroleum and Natural Gas Regulatory Board (Authorizing Entities to Lay, Build, Operate or Expand City or Local Natural Gas Distribution Networks) Regulations, 2008, is violative of Articles 14 and 19(1)(g) of the Constitution, and ultra vires Section 16 of Petroleum and Natural Gas Regulatory Board Act, 2006 (PNGRB Act).
“It is held that Regulation 18 is neither arbitrary, nor ultra vires. The objective underlying Regulation 18, is compatible with the overall objectives of the PNGRB Act.
