The Sikkim High Court is hearing a Public Interest Litigation (PIL) challenging the state government’s controversial decision to sell a 60.08% majority stake in Sikkim Urja Limited to Greenko Enterprises Pvt. Ltd. The PIL, filed by MK Subba, raises serious concerns about financial transparency and environmental accountability.The petition targets the February 2024 cabinet decision, alleging procedural lapses, including the absence of statutory audits and failure to conduct a post-disaster impact assessment following the devastating Glacial Lake Outburst Flood (GLOF) in October 2024.
Key legal arguments include potential violations of the Companies Act, 2013, which mandates thorough audits for public sector undertakings. “Without audited accounts, the legitimacy of this disinvestment and the project’s viability remain questionable,” Subba stated. Environmental concerns add another dimension, as the petitioner argues that no Environmental Impact Assessment was conducted post-GLOF. Critical infrastructure damage, the absence of a Detailed Project Report vetted by national authorities, and gaps in the Post Disaster Needs Assessment have further fueled the challenge.
While the court has dismissed attempts to implead agencies like the Comptroller and Auditor General and the Ministry of Forest and Climate Change, the main petition remains active. The petitioner has been granted time to file a rejoinder after the court’s vacation.