Chandigarh– In a significant setback for the Punjab government, the Punjab and Haryana High Court has stayed the sale of properties belonging to the Punjab State Power Corporation Limited (PSPCL) until further notice. The court’s intervention follows a Public Interest Litigation (PIL) alleging that the state is attempting to liquidate public assets to cover massive financial deficits caused by defaulting government departments.
The petition, moved by Chandigarh resident Rajbir Singh, challenges the government’s strategy to bridge the fiscal gap by selling off the utility’s infrastructure rather than clearing legitimate arrears.
The Massive Arrears Crisis
The petitioner presented startling figures regarding the utility’s financial health:
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Departmental Defaults: Various state departments owe PSPCL a staggering ₹2,582 crore in unpaid electricity bills as of August 2025.
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Subsidy Backlog: The government’s pending power subsidy payments have reportedly crossed the ₹10,000 crore mark.
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Key Defaulters: The departments of Water Supply and Sanitation, Local Government, Rural Development and Panchayats, and Health were identified as the primary non-paying entities.
Petitioner’s Demands
The PIL argues that instead of selling public property, the court should direct the government to clear its dues immediately. The petitioner has sought:
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Immediate Injunction: An end to the proposed sale of PSPCL assets.
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Disconnection Orders: Permission for PSPCL to disconnect power to defaulting government offices.
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Debt Clearance: A time-bound mandate for the Punjab government to release pending subsidy and bill amounts.
Court’s Intervention
Taking a stern view of the financial mismanagement, the High Court issued an interim stay on the disposal of any PSPCL assets. The Bench noted the gravity of the fiscal strain on the power corporation and has scheduled the next hearing for March 16, by which time the state government is expected to provide a detailed response.
