HC quashes Govt notice asking Tata to supply power to R-Infra

MUMBAI: The Bombay High Court today set aside a Maharashtra Government directive that asked Tata Power to supply 360 MW power to Anil Ambani led R-Infra.

A Division Bench of Justices Dhananjay Chandrachud and Anoop Mohata held that such a directive was "ultravires" to the provisions of the Electricity Act.

The State Government had issued a directive last year to state load dispatch centre to continue to supply power to R-Infra from Tata Power.

Last year, the company said it would stop selling 360 MW power to R-Infra following which the Ambani-owned power supply company sought the state's intervention.

The Government issued the directive saying that if Tata discontinues power supply to R-Infra, the suburbs of Mumbai would face acute shortage or be burdened with higher tariffs as it would have to buy electricity from outside the state.

Hence, the Government said it was stepping in and asking Tata Power to maintain status quo in the matter of power supply to R-Infra.

Tata Power moved the High Court challenging the directive. It argued that in keeping with the provisions of the Electricity Act, the Government cannot issue such a directive compelling it to supply power to a particular distributor.

The High Court had last year refused to grant interim relief to Tata Power against the directive to supply power to R-Infra. It had said that the dispute could be settled by Maharashtra Electricity Regulatory Commission.MUMBAI: The Bombay High Court today set aside a Maharashtra Government directive that asked Tata Power to supply 360 MW power to Anil Ambani led R-Infra.

A Division Bench of Justices Dhananjay Chandrachud and Anoop Mohata held that such a directive was "ultravires" to the provisions of the Electricity Act.

The State Government had issued a directive last year to state load dispatch centre to continue to supply power to R-Infra from Tata Power.

Last year, the company said it would stop selling 360 MW power to R-Infra following which the Ambani-owned power supply company sought the state's intervention.

The Government issued the directive saying that if Tata discontinues power supply to R-Infra, the suburbs of Mumbai would face acute shortage or be burdened with higher tariffs as it would have to buy electricity from outside the state.

Hence, the Government said it was stepping in and asking Tata Power to maintain status quo in the matter of power supply to R-Infra.

Tata Power moved the High Court challenging the directive. It argued that in keeping with the provisions of the Electricity Act, the Government cannot issue such a directive compelling it to supply power to a particular distributor.

The High Court had last year refused to grant interim relief to Tata Power against the directive to supply power to R-Infra. It had said that the dispute could be settled by Maharashtra Electricity Regulatory Commission.