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MSEB happy over SC stay on arbitration, escrow: Bansal

Maharashtra State Electricity Board has expressed its happiness over the Supreme Court's stay over international arbitration proceeding and activation of escrow account by Dabhol Power Company.

"We are quite happy over the apex court's decision to extend Maharashtra Electricity Regulatory Commission's stay over arbitration and escrow account," MSEB chief Vinay Bansal told PTI over phone from Delhi on Monday.

He said MSEB has got what it wanted and that the board would appreciate the Bombay high court's decision over the commission's jurisdiction in every manner.

"Our main worry was a possible lift on MERC and HC's stay on arbitration and escrow by the SC, as it will cost us millions of rupees in the form of engaging a counsel and also for the proceedings to be held in London," another senior MSEB official said.

In its ruling on Monday, the SC has also asked Bombay high court to decide whether the regulator had the jurisdiction to adjudicate upon the $48 million dispute over non-payment of dues by the loss-making board to the energy major.

The SC said, "until such time the high court finally hears and decides the writ petition filed by DPC challenging the jurisdiction of MERC, the Commission will not pass further orders on MSEB's application."

"Equally during that time, arbitration proceedings commenced by DPC will not be proceeded with," it said adding "till the high court decides the writ petition, the interim orders passed by the Commission will continue."

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