The Hindu Business Line : Dues recovery: Tata Power told not to take coercive steps

NEW DELHI: The Supreme Court on Monday directed Tata Power Company (TPC) not to take coercive steps for recovery of energy charges to the tune of Rs 56 crore from Anil Ambani-owned Reliance Infrastructure.

Reliance is supposed to pay Rs 56 crore including interest to Tatas by June 9. A Bench headed by Justice Mr C K Thakker while seeking reply from Tata Power and Maharashtra Electricity Regulatory Commission (MERC) asked Tata Power Company (TPC) not to ta ke coercive measures against Reliance till the next date of hearing in July.

Reliance has challenged the Appellate Tribunal for Electricity's (ATE) order dated May 12, 2008, which ruled that TPC was entitled to recover charges for energy supplied to REL at the rate of Rs 2.09 per unit.

The balance outstanding dues on account of differences in energy rates between Rs 2.09 per kwh and Rs 1.77 per kwh and shortfall in minimum off-take of energy should be released to TPC within four weeks along with delayed payment charges at the prevailin g SBI Prime lending Rate for short borrowing and not at the rate of 24 per cent per annum as directed by the MERC, the tribunal had held.

ATE had also said that the issue relating to 'take or pay' should be examined after the apex court's decision in another appeal relating to the issues, as to whether or not TPC was a distribution licensee and whether or not Reliance's offer of rebate to its consumers to prevent them from moving away from it was tenable in law.

It may be noted that the Supreme Court allegedly in a similar petition in January last year had directed TPC to refund 50 per cent of the Rs 451.35-crore to Reliance paid as standby charges for electricity supply in Maharashtra and pay the rest as bank g uarantee. - PTI

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