Mumbai, Jan 18 (PTI) The Bombay High Court today setaside a Maharashtra Government directive that asked Tata Powerto supply 360 MW power to Anil Ambani led R-Infra.
A Division Bench of Justices Dhananjay Chandrachud andAnoop Mohata held that such a directive was "ultravires" tothe provisions of the Electricity Act.
The State Government had issued a directive last year tostate load dispatch centre to continue to supply power toR-Infra from Tata Power.
Last year, the company said it would stop selling 360 MWpower to R-Infra following which the Ambani-owned power supplycompany sought the state''s intervention.
The Government issued the directive saying that if Tatadiscontinues power supply to R-Infra, the suburbs of Mumbaiwould face acute shortage or be burdened with higher tariffsas it would have to buy electricity from outside the state.
Hence, the Government said it was stepping in and askingTata Power to maintain status quo in the matter of powersupply to R-Infra.
Tata Power moved the High Court challenging thedirective. It argued that in keeping with the provisions ofthe Electricity Act, the Government cannot issue such adirective compelling it to supply power to a particulardistributor.
The High Court had last year refused to grant interimrelief to Tata Power against the directive to supply power toR-Infra. It had said that the dispute could be settled byMaharashtra Electricity Regulatory Commission.