Tough Times for Powercom: after power cut backlash, another row erupts over Rs 1.97 crore guarantee returned to power minister’s firms
Kanwar Inder Singh/ royalpatiala.in News/ April 24,2026
After long power cuts, another controversy has rocked state’s lifeline-Punjab State Power Corporation Limited (PSPCL) after it has returned a bank guarantee worth Rs 1.967 crore (Rs 1,96,71,0101) to a Ludhiana-based Ritesh Properties and Industries Ltd formerly associated with Punjab Power Minister Sanjiv Arora without securing a revised bank guarantee.
The company in question is Ritesh Properties and Industries Ltd (RPIL), a public limited company listed on the Bombay Stock Exchange, and promoted by the father of Sanjiv Arora, Pran Arora.
As per available information, Sanjiv Arora had resigned from all his companies after he was elevated as a cabinet minister on August last year.
The case pertains to Hampton Court Business Park, Ludhiana, In 2023, M/s Ritesh applied PSPCL for revised NOC for increasing its contract demand from 1950 KVA to 7293 KVA at 66 KV Voltage and as mandated by regulations notified by PSERC, deposited a Bank Guarantee of Rs 1.97 Cr. (35% of the total cost of supply system etc) valid up to 12 th Sept, 2028. NOC was issued by PSPCL on 20 th Oct 2023.
It is alleged that M/s Ritesh has not complied with NOC so and did not deposit any charges as per NOC however it is using electricity in the extended area as its recorded monthly demand increased to 2314 to 2717 KVA i.e. much more than earlier approved 1950 KVA. Instead of complying NOC for more than one and a half year, M/s Ritesh in 2025, applied for change of supply voltage from 66 KV to 11 KV.
PSPCL on 23rd July, 2025 directed M/s Ritesh to furnish a bank guarantee (BG) of Rs 1.87 Cr. (Rs 1,87,05,150 )and intimated that earlier BG of Rs 1.97 Cr. would be returned only after submission of this new BG.
As per available information, M/s Ritesh on 16 th Sept 2025, represented PSPCL to reduce the BG and other charges. PSPCL vide letter dated 31 st Dec, 2025, while recommending the case sought clarification on the representation of M/s Ritesh from PSERC. As the issue involved amendment in PSERC Regulations, PSPCL in January 2026, filed petition No 2 of 2026 in PSERC. On 30 th Jan, 2026, PSERC ordered that: First-BG to be taken on Contract Demand instead of Load. Second- PSPCL to file comprehensive petition for review of regulation as recommended by PSPCL in its letter dated 31 st Dec, 2025. PSPCL did not file comprehensive petition in this regard.
Later, M/s Ritesh on 2nd Feb, 2026 wrote to PSPCL to refund the BG of 1.97 Cr. without depositing the revised BG as per PSERC clarification. In shocking haste and against the rules, PSPCL refunded the entire BG of Rs 1.97 Cr. on the next day i.e. 3 rd Feb, 2026 that too without obtaining any revised BG or cancelling the NOC issued against BG of Rs 1.97 Cr.
A PSPCL order states that “the competent authority approved the return of the bank guarantee of Rs 1,96,71,0101 subject to the condition that the revised bank guarantee would be deposited as and when demanded, and that no electricity supply would be released until the prescribed conditions were fulfilled. The order was issued with the approval of the Director (Commercial), PSPCL”.
As per information, despite knowing the fact that M/s Ritesh is already using the supply in the extended area as was evident from the monthly Maximum Demand Indicator (MDI) recorded in the range of 2314 KVA to 2717 KVA against the approved demand of 1950 KVA, PSPCL simply added the remarks that no electricity connection be released in the area under NOC issued in Oct’ 2023.
PSEBEA general secretary Ajaypal Singh Atwal said “now a big question arises, if statutory safeguards such as Bank Guarantees can be waived under pressure, the credibility of the regulatory framework stands severely compromised. It is a matter of impropriety. It should be inquired into.”
Meanwhile, Sanjiv Arora, who is currently visiting the Netherlands and Finland with Chief Minister Bhagwant Singh Mann, could not be contacted independently by the news portal royalpatiala.in team
But the minister has told Kanchan Vasdev, senior journalist of The Indian Express, “M/s Ritesh Properties is not owned by me. I have already resigned from the company. Otherwise, we have complied with all the rules. What is the illegality? The bank guarantee was returned after permission from the regulator. And what is a bank guarantee? There is no amount involved. It is a paper issued by a bank. The new bank guarantee has already been replaced. Where is the loss to anyone in this?”
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