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January 22, 2021

SHC dismisses plea against privatisation of KESC

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January 22, 2021

KARACHI: The Sindh High Court on Thursday dismissed identical petitions against the privatisation of Karachi Electric Supply Corporation, now K-Electric, and transfer of the company’s shares and administrative control to a Dubai-based company and declared that the privatization process adopted in respect of sale/transfer of shares of KESC does not violate the constitutional mandate.

The court observed that privatization of KESC was the result of policy making decision by the executive authority and once the competent authority in the government has taken a decision, which is backed by law, rules and regulations and does not suffer from any malafide, then it would not be in consonance with the well-established norms of judicial review to interfere in policy making decision of the executive authority.

The court declared that the petitioners have failed to establish the malafide on the part of government and privatization commission in respect of sale/transfer of the shares to KESC through negotiated sale to a private company, which is otherwise permissible in law and as per rules. The judgment came after 15 years long litigation initiated by the KESC labuor union against the privatization of the power utility of the city.