SC upholds ruling of Appellate Tribunal for Electricity vs Vedanta arm
This story was originally published at 15:29 IST on 20 August 2025
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--Vedanta: SC upheld Appellate Tribunal for Electricity ruling against arm
NEW DELHI – The Supreme Court Tuesday upheld an order passed by the Appellate Tribunal for Electricity on July 4, 2017, which had rejected a plea of Talwandi Sabo Power Ltd., a wholly-owned subsidiary of Vedanta Ltd., the parent company said in a stock exchange filing Wednesday. The tribunal had rejected Talwandi Sabo Power's claim of compensation arising from the denial of deemed export benefits by the Punjab State Electricity Regulatory Commission. The commission had passed an order passing these benefits to Punjab State Power Corp. Ltd.
The Supreme Court order Tuesday clubbed the Vedanta subsidiary's civil appeal with a similar one by Nabha Power Ltd., a wholly owned subsidiary of Larsen & Toubro Ltd., against the Appellate Tribunal for Electricity order against it in the same matter. Nabha Power's civil appeal was also rejected by the court and the tribunal's order was upheld.
According to Vedanta's annual report for the financial year 2024-25 (Apr-Mar), the company had outstanding trade receivables in relation to the dispute between Talwandi Sabo Power and Punjab State Power Corp. "relating to assessment of whether there has been a change in law following the execution of the power purchase agreement". The outstanding trade receivables were INR 16.91 billion as on Mar. 31.
As per the annual report, Vedanta had continued to treat these trade receivables as recoverable in its consolidated accounts on the basis of its assessment of the merits of the case and its confidence that the Supreme Court would uphold Talwandi Sabo Power's appeal. But with the court Tuesday rejecting the subsidiary's appeal, the company may have to write off these trade receivables.
At 1514 IST, shares of Vedanta were down 1.1% at INR 445.40 on the National Stock Exchange. Shares of L&T were down 0.6% at INR 3,592.40. End
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Reported by Rajesh Gajra
Edited by Rajeev Pai
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