In a blow to Indraprastha Gas Ltd (IGL), the Supreme Court today declined to grant a stay following the company’s plea challenging Petroleum and Natural Gas Regulatory Board’s (PNGRB) authority to invite public bids for gas distribution in Ghaziabad.

A vacation bench comprising Justices B Sudershan Reddy and Aftab Alam dismissed as withdrawn IGL’s plea alleging that the government had not given the regulator explicit powers to authorise private entities to distribute gas.

IGL had also challenged the Delhi High Court’s interim order that refused to stay the public bids invited by the PNGRB for retailing CNG to automobiles and piped cooking gas in the city.

Stating that the PNGRB was created by a statute and had no powers to give such authorisation, the petition said that the High Court failed to see that the board had “illegally” proceeded with the bid.

Seeking to stay the bidding process, for which the last date of submission is June 25, IGL stated that the PNGRB is issuing letters of intent to companies under the self-made Petroleum and Natural Gas Regulatory Board (authorising entities to lay, build, operate or expand city gas distribution networks) Regulations 2008.

IGL also alleged that the Board had “illegally” usurped the powers of granting authorisation. According to IGL, it had invested Rs 2.12 crore in executing the project with the sole purpose of making natural gas available to consumers as expeditiously as possible.

IGL further said that the Uttar Pradesh government, Ghaziabad Development Authority and others had permitted it to lay pipelines and distribute natural gas to consumers in Ghaziabad. However, the Board had refused to give permission even though it had no authority to do so, it added.