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However, in the said Impugned order the authorization dated 26.09.2011 concerning TTZ Area in favour of the Appellant was quashed on the reasoning that the same had been granted by the then Chairman of PNGRB in the exercise of the powers delegated to him which was found to be bad by the Hon'ble Delhi High Court. It was further held that the authorization in favour of GAIL still holds good. The Members also held that GAIL can submit a proposal under the relevant Authorizing Regulations, 2008 to the Board, if it intends to renunciate the authorization in favour of another entity and in that case it shall provide all the information as may be called for by the Board. The Chairman wrote a separate dissenting order whereby after taking into consideration the fact that the area had been originally allocated by the Hon'ble Supreme Court for distribution of gas and that the Appellant is a wholly-owned subsidiary of GAIL and thus the subsidiary could not be said to have a separate existence from GAIL with regard to TTZ held that the authorization in favour of the Appellant did not call for any interference. The Chairman also referred to Section 9(c) of the PNGRB Act to hold that any irregularity in the procedure of the Board not affecting the merits of the case does not render the action invalid disagreed with the order passed by the majority. In a separate order, another Member held that the Complainant having been authorised through a bidding process in the Mathura GA does not have the locus - standi to raise authorization of Firozabad GA to the Appellant as a dispute between entities and hence the complaint to be dismissed with costs.

i) GAIL (India) Ltd. requested PNGRB to issue the authorization of Firozabad TTZ in favour of the Appellant instead of GAIL (India) Ltd.
ii) That the Chairperson of the Board accepted the Central Government's Authorization and issued the letter dated 26.09.2011 which authorized the Appellant to supply gas in the Firozabad GA in TTZ which is ultra vires in terms of section 16,17 of the Act and Regulation 17 of the Authorization Regulation & was correctly quashed by Majority members in PNGRB order dated 02.03.2015.
(5) The GAIL shall commence supply of gas to the industries by 30-6-1997. As soon as the gas supply to an industry commences, the supply of coke/coal to the said industry shall be stopped with immediate effect."

(26) Pursuant to this order of the Supreme Court, MOP&NG vide its letter dated 27.07.1995 directed that the secondary distribution of natural gas in TTZ be taken by a joint venture company to be set up by GAIL. Thus it is clear that much before the enactment of the PNGRB Act, 2006, GAIL had been tasked by the Hon'ble Supreme Court to supply gas to TTZ. Vide letter dated 27.07.1995, the Central Government authorized GAIL (India) Ltd. to take up the secondary distribution of gas in the Taj Trapezium Zone (TTZ) and principal, 0.6 MMSCMD gas was allocated, which was to be later taken by joint venture company to be set up by GAIL(India) Ltd., and was directed to take necessary action for the same. The Board accepted the authorization granted to the Appellant by MoP&NG as per Section 17 of the PNGRB Act, 2006 vide letter dated 26.09.2011. Further, vide letter dated 29.09.2011, Central Government has accepted the authorization in favour of the Appellant and transferred the 1.1 MMSCMD Gas in favour of the Appellant. Thus, the documents which are indicating approval in favour of Appellant are as under :

Thus in view of the PNGRB order dated 26.09.2011 & MoP&NG letter 29.09.2011 which complimented the transfer of gas of 1.1 mmscmd in favour of GAIL Gas holds the authorization in favour of Appellant valid.

(28) CONCLUSION

i) It may be concluded that pursuant to the order of the Supreme Court, wherein GAIL (India) Ltd. was tasked to supply gas to industries in TTZ, MoP&NG vide its letter dated 27.07.1995 authorized GAIL(India) Ltd. to take up the secondary distribution of gas in the Taj Trapezium Zone (TTZ) and principal, 0.6 MMSCMD gas was allocated (further 0.5 mmscmd was allocated totaling to 1.1 mmscmd), which was to be later taken by joint venture company to be set up by GAIL(India) Ltd., and directed to take necessary action for the same. Thus it is clear that much before the enactment of the PNGRB Act, 2006, GAIL had been tasked by the Supreme Court to supply gas to TTZ. Pursuant of setting up of PNGRB, GAIL submitted an application vide letter dated 17.10.2008 under Regulation 17 of Petroleum and Natural Gas Regulatory Board (Authorising Entities to Lay, Build, Operate or Expand City or Local Natural Gas Distribution Networks) Regulations, 2008 for acceptance of Central Governments authorization under Section 17 (2) of the PNGRB Act and furnished particulars. Further, before the Board passing an Order thereupon, vide letter dated 18.03.2011 GAIL had sought authorization in favour of the Appellant i.e GAIL Gas Ltd. which is the wholly-owned subsidiary of GAIL (India) Ltd. which was formed to carry out all the CGD activities and to issue the authorization in favour of GAIL Gas Ltd. instead of GAIL (India) Ltd.. It is relevant to mention herein that the Board of Directors of GAIL (India) Ltd. in their 287th Board Meeting held on 06.04.2011, had approved the transfer of local distribution project in the Agra-Firozabad area to GAIL Gas Ltd..