Telangana HC To Hear Petition As TGNPDCL Takes Over Sircilla CESS

Karimnagar: The Telangana High Court will hear a petition on April 6 on the future of the Cooperative Electric Supply Society (CESS), Sircilla, following its takeover by the Telangana Northern Power Distribution Company Limited(TGNPDCL) after the cooperative failed to renew its licence.

The transition ended CESS's 56-year functioning as a self-governing cooperative. A public interest petition has sought its permanent merger with TGNPDCL, alleging large-scale corruption, while the present CESS governing body is preparing a separate legal challenge against the takeover.

A petition filed by Biyyanka Srinivas, president of a local civic welfare association, alleged financial irregularities led to losses of about Rs 94.99 crore between 2014 and 2022. Audit reports cited in the plea attributed the losses to incorrect billing categories, faulty meter readings and failure to properly record assets worth nearly Rs 60 crore.

The petition also stated that CESS dues to TGNPDCL for power purchases increased from Rs 558 crore in 2022 to an estimated Rs 900 crore by 2026.

According to the petitioner, the cooperative has become heavily dependent on government subsidy. While state discoms such as TGNPDCL and TGSPDCL reportedly depend on subsidies for about 40 to 45 per cent of their revenue, CESS allegedly requires nearly 67 per cent support.

The plea also pointed to administrative expenditure, including Rs 2.90 crore spent on staff travel over three years, as evidence of mismanagement and argued for a complete merger into the state distribution network.

Following the takeover, TGNPDCL Chairman and managing director Karnati Varun Reddy assumed direct oversight of operations in Sircilla and conducted reviews to ensure uninterrupted supply to 3.05 lakh consumers.

The state government also issued a government order creating a new operation circle at Sircilla for temporary administration of services.

CESS was established in 1970 as a pilot project based on rural electrification models.

CESS chairman Chikkala Rama Rao said the society had functioned smoothly for 56 years, and the elected governing body should continue to manage it under cooperative bylaws.

While the government claimed the CESS owed Rs 682.22 crore to NPDCL, it has failed to pay us Rs 787.25 crore in outstanding dues. Despite these unpaid arrears, the organisation remains in a profit of Rs 105 crore.

"We applied for a licence renewal in December 2025, but the government intentionally kept it pending until the deadline passed to justify this takeover. If the government acts out of political vengeance and attempts to merge CESS into NPDCL, we will launch a massive movement. There is no corruption here, and these baseless allegations are merely an attempt to tarnish the institution's reputation. There is no question of a merger, we will approach the court to secure our licence renewal if necessary," he said.

BRS working president and Sircilla MLA K.T. Rama Rao appealed to party cadre to protect CESS and asked party members to support the organisation.

The government is conspiring to weaken this institution by handing it over to TGNPDCL, he alleged and demanded that CESS continue to operate independently as it always has and will lead the movement to stop the government's attempts to dismantle it.

TGNPDCL managing director Varun Reddy said CESS had been brought under its control following government orders and steps were being taken to ensure uninterrupted services.

He said TGERC regulations would be implemented, including uniform service line charges for agricultural, domestic and industrial consumers within a one-km radius. He also said the Rs 1 crore accident insurance coverage available to NPDCL employees would be extended to CESS staff.

The High Court hearing is expected to determine the immediate administrative future of CESS and the continuation of the present interim arrangements.