The Central Electricity Regulatory Commission (CERC) has initiated formal proceedings against Vedprakash Power Private Limited over serious regulatory non-compliance, raising the possibility of revoking the company’s inter-State electricity trading licence. In an order issued on April 15, 2026, the Commission highlighted multiple lapses, including prolonged non-payment of mandatory fees and the complete absence of trading activity over several years.
Vedprakash Power Private Limited was granted a Category ‘IV’ inter-State trading licence on August 19, 2013, which authorized it to carry out electricity trading operations across India. As per the applicable regulations, all licensees are required to pay an annual license fee by April 30 each year. However, the Commission observed that the company has failed to meet this obligation for five consecutive financial years, from 2021–22 to 2025–26. The total outstanding dues, including late payment surcharges, have accumulated to Rs. 20.10 lakh as of February 28, 2026.
In addition to financial defaults, the company has also failed to comply with its reporting obligations under the Trading Licence Regulations, 2020. These regulations mandate the submission of monthly trading data, annual transaction returns certified by professionals, and copies of annual reports and audited financial statements. Despite receiving eight reminder letters from the Commission between July 2024 and July 2025, the company has neither submitted the required documents nor responded to any communication.
The Commission further noted that Vedprakash Power has not undertaken any electricity trading activity in the last five years. This is considered a serious violation, as the regulations clearly prohibit licencees from neglecting their trading responsibilities. The absence of operational activity, combined with continuous non-payment of fees, has led the Commission to form a prima facie opinion that the company may no longer be eligible to retain its license.
Under Section 19 of the Electricity Act, 2003, the Commission has the authority to revoke a license if it determines that the licensee has committed willful and prolonged defaults or is no longer capable of performing its duties. The law requires that the licencee be given a minimum notice period of three months before such action is taken.
In its latest directive, the Commission has asked Vedprakash Power Private Limited to submit a detailed response within two months, explaining why its licence should not be revoked. The order also serves as the formal notice required under the Act. If the company fails to respond within the stipulated timeframe, its license will automatically stand revoked three months from the date of the order.
The order has been issued under the authority of the Commission’s Chairperson, along with its members, signaling a firm stance on regulatory compliance and accountability within the power trading sector.
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