CERC issues show-cause notice to Vedprakash Power over licence defaults
Author: PPD Team Date: April 19, 2026
The Central Electricity Regulatory Commission (CERC) has directed Vedprakash Power Private Limited to explain within two months why its inter-state electricity trading licence should not be revoked, citing non-payment of fees and absence of trading activity since at least 2021.
Vedprakash Power, based in Mumbai, holds a Category IV inter-state trading licence granted on August 19, 2013 under the Electricity Act, 2003, covering trading across India. Its licence category remained unchanged after the Trading Licence Regulations, 2020 came into effect.
In its order dated April 15, 2026, CERC identified multiple violations. The company has not paid its annual licence fee of Rs 3 lakh for five consecutive financial years from 2021-22 to 2025-26, despite the requirement to pay by April 30 each year. The total outstanding dues, including late payment surcharge, stood at Rs 20.10 lakh as of February 28, 2026.
The Commission also noted non-compliance with reporting obligations. Vedprakash Power failed to submit monthly transaction reports, annual returns, audited financial statements, and performance disclosures required under the Trading Licence Regulations, 2020. Eight reminder letters were issued between July 18, 2024 and July 10, 2025, with no response from the company.
Further, the regulator observed that the company has not undertaken any trading activity over the past five years, in violation of provisions that require licensees to actively conduct trading operations.
CERC invoked provisions under Section 19 of the Electricity Act, 2003, which allow licence revocation in cases of prolonged default. The April 15, 2026 order serves as the statutory notice under Section 19(3).
Vedprakash Power has been given two months from April 15, 2026 to submit its response. If no reply is filed, the licence will stand revoked upon completion of three months from the date of the order, unless directed otherwise.
The order was issued by a bench comprising Chairperson Jishnu Barua and Members Ramesh Babu V., Harish Dudani, and Ravinder Singh Dhillon.
The featured photograph is for representation only.
