Supreme Court Rejects Karnataka Discoms' Plea Over Rs 10.05 bn Adani Power Invoices
ECONOMY & POLICY

Supreme Court Rejects Karnataka Discoms' Plea Over Rs 10.05 bn Adani Power Invoices

The Supreme Court on Monday dismissed a plea by a group of Karnataka electricity distribution companies seeking a stay on invoices uploaded by Adani Power on a government portal that tracks power purchase transactions and payment arrears. A bench led by Justice PS Narasimha declined to interfere with the Appellate Tribunal for Electricity (Aptel), which had earlier refused to stay the invoices. The court upheld the Central Electricity Regulatory Commission (CERC) direction requiring the discoms to pay the entire amount within 45 days. The court also directed Aptel to pronounce its final order within three months.

The invoices aggregated to Rs 10.05 billion (Rs 10,050 mn) and relate to carrying costs on differential amounts and a late payment surcharge claimed by Adani Power. In 2023 CERC had found the Karnataka discoms liable to pay carrying costs on the differential sums and had directed payment of the surcharge. The commission had prescribed that the payment be made in six instalments, with Adani Power entitled to late payment surcharge if the instalments were not honoured. Adani Power subsequently approached the commission alleging noncompliance.

In their appeal the Karnataka discoms, led by Power Company of Karnataka, contended that there were no outstanding dues and that Aptel had wrongly declined to stay CERC’s order without addressing the merits. The utilities said they had paid the sums under protest to avoid any regulatory action or interruption to supply and to protect consumers from immediate hardship. They warned that any curtailment or regulation of power supply arising from nonpayment of the disputed amounts would cause grave prejudice, irreparable harm and serious hardship to their operations and to consumers.

The Supreme Court’s decision maintains the CERC payment direction for Rs 10.05 bn while the substantive dispute proceeds before Aptel, leaving the tribunal to decide the merits within the period directed. The order preserves the status quo as appellate adjudication continues. The case highlights tensions between contractual claims by generators and the operational and financial pressures faced by state distribution firms, and stakeholders will await Aptel’s final order.

The Supreme Court on Monday dismissed a plea by a group of Karnataka electricity distribution companies seeking a stay on invoices uploaded by Adani Power on a government portal that tracks power purchase transactions and payment arrears. A bench led by Justice PS Narasimha declined to interfere with the Appellate Tribunal for Electricity (Aptel), which had earlier refused to stay the invoices. The court upheld the Central Electricity Regulatory Commission (CERC) direction requiring the discoms to pay the entire amount within 45 days. The court also directed Aptel to pronounce its final order within three months. The invoices aggregated to Rs 10.05 billion (Rs 10,050 mn) and relate to carrying costs on differential amounts and a late payment surcharge claimed by Adani Power. In 2023 CERC had found the Karnataka discoms liable to pay carrying costs on the differential sums and had directed payment of the surcharge. The commission had prescribed that the payment be made in six instalments, with Adani Power entitled to late payment surcharge if the instalments were not honoured. Adani Power subsequently approached the commission alleging noncompliance. In their appeal the Karnataka discoms, led by Power Company of Karnataka, contended that there were no outstanding dues and that Aptel had wrongly declined to stay CERC’s order without addressing the merits. The utilities said they had paid the sums under protest to avoid any regulatory action or interruption to supply and to protect consumers from immediate hardship. They warned that any curtailment or regulation of power supply arising from nonpayment of the disputed amounts would cause grave prejudice, irreparable harm and serious hardship to their operations and to consumers. The Supreme Court’s decision maintains the CERC payment direction for Rs 10.05 bn while the substantive dispute proceeds before Aptel, leaving the tribunal to decide the merits within the period directed. The order preserves the status quo as appellate adjudication continues. The case highlights tensions between contractual claims by generators and the operational and financial pressures faced by state distribution firms, and stakeholders will await Aptel’s final order.

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