In Brief
Adani Gas Limited sought authorisation from the Petroleum and Natural Gas Regulatory Board (PNGRB) to operate gas distribution networks in Udaipur and Jaipur after receiving a No Objection Certificate (NOC) from the State Government in 2006 and investing substantially. The Board rejected its application in May 2011 primarily on grounds of insufficient physical progress, and the State Government revoked the NOC. The Supreme Court held that the Board's rejection was legally defective because it failed to consider all prescribed regulatory criteria holistically, ignored the newly introduced deemed authorisation provision, and did not discuss the applicant's detailed submissions or personal hearing. The State Government's NOC revocation was unfair as it disregarded the applicant's reply. Both orders were quashed and the Board was directed to reconsider the application afresh within 4 weeks after affording a fresh hearing.
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