Lucknow | The consulting firm Grant Thornton, which is responsible for preparing the privatisation proposal for Uttar Pradesh’s electricity distribution companies (DISCOMs), has become the centre of a growing controversy. The issue gained attention after reports emerged that the Madhya Pradesh Electricity Corporation cancelled a contract awarded to the company and seized its bank guarantee and security deposit, triggering political and administrative debate. The State Electricity Consumers Council has demanded a high-level investigation into the matter.
According to available information, Grant Thornton was assigned the responsibility of supporting the privatisation process related to Purvanchal Electricity Distribution Corporation Limited and Dakshinanchal Electricity Distribution Corporation Limited in Uttar Pradesh. The company was expected to provide technical and financial analysis along with policy recommendations to the government. However, concerns have now been raised regarding the company’s past performance and operations.
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State Electricity Consumers Council President Avadhesh Verma claimed that the Madhya Pradesh Electricity Corporation had cancelled the company’s tender and seized its bank guarantee. He stated that the action was reportedly taken in September 2025, although related documents have now been made public. The documents reportedly mention the confiscation of the company’s security deposit. However, the Madhya Pradesh Electricity Corporation has not yet issued any detailed official statement regarding the action.
Verma also alleged that Grant Thornton had faced penalty action at the international level as well. According to him, the company was fined approximately 40,000 US dollars in the United States. At that time, the Uttar Pradesh Power Corporation reportedly stated that foreign regulatory action should not be considered applicable in India, and therefore the company was allowed to continue its work. The fresh disclosure has again raised questions.
The Consumers Council has demanded an immediate halt to the privatisation proposal in Uttar Pradesh. The organisation argued that a company facing regulatory or legal action in other states and countries should not be retained as a consultant for an important government project. The council also questioned the transparency of the tender selection process.
The council further demanded a high-level investigation into the role of officials involved in preparing the privatisation proposal. It stated that administrative scrutiny is necessary to rule out any possible financial or policy irregularities associated with the project.
The issue also came up during a public hearing in Ayodhya regarding electricity tariff determination by the Power Transmission Corporation. Energy department officials along with the chairman and members of the State Electricity Regulatory Commission were present during the hearing, where concerns related to consumer interests and tariff calculation procedures were discussed.
Energy sector experts believe that before implementing any privatisation proposal, a comprehensive assessment of the consultant company’s past performance, financial records and legal compliance history is essential. They emphasise that transparency and reliability are particularly important in sensitive sectors like electricity distribution.
So far, no official response has been issued by the energy department or related government agencies regarding the matter. The Consumers Council has warned that it may approach the court if appropriate action is not taken.
About the author — Suvedita Nath is a science student with a growing interest in cybercrime and digital safety. She writes on online activity, cyber threats, and technology-driven risks. Her work focuses on clarity, accuracy, and public awareness.
