Chandigarh Administration has officially concluded the transfer of employees, assets, and liabilities from the Electricity Wing of the Engineering Department to Chandigarh Power Distribution Limited (CPDL), effective from February 1, 2026. This significant move marks the end of a 12-month provisional arrangement that was established under the Chandigarh Electricity Reforms Transfer Scheme, 2025.
Background of the Transfer Scheme
The Chandigarh Electricity Reforms Transfer Scheme, 2025, was notified by the UT Engineering Department on January 31 last year. Initially, February 1, 2025, was designated as the effective date for transferring electricity distribution functions. However, the Administration opted to keep this transition provisional. This decision allowed authorities to retain the flexibility to modify terms, including the valuation of assets and liabilities, during the interim period.
Notification of Final Transfer
In a notification issued on January 30, 2026, the Administration clarified that the provisional phase had now concluded. All transfers made under the scheme, as amended from time to time, have attained finality. The notification explicitly stated that references to "provisional transfer" in the scheme would henceforth be read as "final transfer." This formalizes the handover of electricity distribution operations, along with associated assets, liabilities, rights, obligations, proceedings, and personnel, to the government-owned distribution company.
Legal Challenges and Tribunal Observations
The finalization of this transfer occurs amidst ongoing legal proceedings before the Central Administrative Tribunal (CAT). On January 29, the tribunal made a crucial observation regarding the status of employees during the provisional period. It noted that employees of the electricity wing continued to be part of the Chandigarh Administration while working with CPDL on a temporary basis.
Employee Petition and Arguments
This observation arose during the hearing of an application filed by Pankaj Kumar Gautam, an employee of the Electricity Wing. Gautam has challenged the transfer of his services to CPDL under the reform scheme, questioning the legality of shifting employees to the newly created power distribution company. In response, both the Chandigarh Administration and CPDL argued that the services of all employees had already been transferred through the notification issued on January 31, 2025, rendering Gautam's application untenable.
Tribunal's Ruling and Future Proceedings
After examining the scheme and related records, the tribunal confirmed that the transfer remained provisional for 12 months, ending on January 31, 2026. Until this period's completion, the Bench held that employees continued to remain with the Administration, despite functioning under CPDL. The tribunal directed that status quo regarding the applicant's service conditions be maintained until the next hearing. However, it clarified that this order would not prevent the employee from continuing his duties under CPDL. The matter is scheduled for further hearing on February 27.
Implications of the Transfer
The completion of this transfer represents a pivotal step in Chandigarh's electricity reforms. It aims to streamline power distribution operations under a dedicated entity, potentially improving efficiency and service delivery. However, the legal challenges highlight concerns among employees about job security and the procedural aspects of such transitions. As the Administration moves forward with this finalized transfer, stakeholders will be closely monitoring the outcomes and any further developments in the legal arena.
