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NGEF: State pulled up for inaction on court order

Staff Reporter

Show-cause notice to be issued to Principal Secretary, Commerce and Industries


  • The court had sought Cabinet records on the decision to close down NGEF
  • State wants to appeal against the order on submission of records
  • Court informed that the final revival package has to be placed before the Cabinet
  • The Government has been given three weeks to place the revival package before the court

    BANGALORE: The Karnataka High Court on Thursday took exception to the State Government's failure to comply with its order to place before it Cabinet records pertaining to the closure of the New Government Electric Factory (NGEF) in Bangalore.

    Justice Rammohan Reddy, who is presiding over the liquidation proceedings, ordered issue of show-cause notice to Lakshmi Venkatachalam, Principal Secretary, Department of Commerce and Industries, as to why action should not be taken against her for deliberate inaction on the court order of December 22, 2005 asking for production of Cabinet records on the decision taken by the previous government to close down the NGEF.

    On that day, the court terminated the auction proceedings of NGEF assets and gave time to the Government till March 16, 2006 to submit a comprehensive revival package.When the matter came up, Advocate-General R.N. Narasimha Murthy said the final report of the revival package prepared by the consultants appointed by the Government has to be placed before the Cabinet.

    He said the State wants to prefer an appeal against the December 22 order by Justice Reddy seeking the production of certain Cabinet records. Justice Reddy sought to know the reasons for the delay in placing the revival package before the court.

    Justice Reddy took on record the submission of the Advocate-General that the consultants made a presentation of the revival package on Wednesday, and the State is likely to make some suggestions. He said there has been some progress. The State was given sufficient time, but because of the changed circumstances, it is appropriate to grant more time. He, however, said the six weeks' time sought for by the Advocate-General is too long and three weeks are sufficient to submit the final revival package. He said the notice is returnable in a week's time and posted hearing of the case to March 23.

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