DERC to recover Rs 35 lakh paid to ex-member for 'fraud'

NEW DELHI: Former Delhi Electricity Regulatory Commission member AK Ambasht said he had received communication about the availability of the lease rent facility from the DERC secretary, which he decided to avail of, and the proposal was approved by the commission after "due deliberations and discussions".

Ambasht was appointed as a member on Dec 30, 2019, and remained in the post till Aug 1, 2023. Before the lease rent facility was offered by DERC, he was entitled to house rent allowance.

The Accountant General (audit), in its report sent to DERC in Oc 2024, stated that the Delhi govt had clearly mentioned in Ambasht's appointment order that he would have the option of claiming HRA for a residence located in the national capital at 30% of his basic pay and that no house would be allotted to him. It added that if the member opted for leased accommodation, the entitlement would be determined by the govt.

"However, the commission, vide office order dated Sept 30, 2021, approved leased accommodation facilities to the chairman/members and determined an entitlement of Rs 2 lakh per month without the approval of GNCTD," the audit observed. "The same is in violation of Section 89 (1) of Electricity Act and Rule 21 (2) of the General Financial Rules. It is pertinent to mention that behind the veil of commission, it is the chairman and members of the commission who have approved leased accommodation facilities for themselves," it added. The audit recommended that the amount may be recovered from Ambasht along with applicable interest on govt recoveries.

The Accountant General (Audit) also asked DERC to take its observations seriously and inform it about other such cases involving the chairman and members. "While recovering the same, these cases shall also be reported to GNCTD for appropriate action for misuse of power to exploit public money for their own benefit by member/chairman," the audit observed in its memo.

In his detailed reply to the audit objections on Feb 3 this year, Ambasht said he neither initiated nor prepared the proposal for the lease rent facility, and had no role in granting approval for the placement of the agenda before the commission for its consideration. He added that as a member of the commission, he participated in deliberations and discussions and gave his consent based on the proposal and justification mentioned in the agenda notes.

"I have a limited role in the subject matter, being a part of the decision-making process of the commission. Further, I happen to be one of the beneficiaries of the aforesaid decision of the commission," Ambasht mentioned in his reply. "It appears that the case pertaining to the payment of the lease rent to me only was singled out and the same was placed before the audit with mala fide intentions by the officials of the Delhi Electricity Regulatory Commission ," he added.