MSEB slaps avoidance notice on DPC
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24/05/2001
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Financial Express (New Delhi)
The Maharashtra State Electricity Board (MSEB), in a retaliatory move, on Thursday slapped an "avoidance" notice under the provisions of the Indian Contracts Act on the Dabhol Power Company (DPC) for "material misrepresentation". The Company, in reply, said the board did not have the right to rescind the power purchase agreement (PPA). "We are now convinced that your conduct is not bonafide and as such we are constrained to avoid/rescind the power purchase agreement (PPA).