Supreme Court Upholds Ruling in Favor of Adani Power in Landmark PPA Dispute

The Supreme Court dismissed Rajasthan power distribution companies' appeal against APTEL’s decision favoring Adani Power. It recognized Coal India's levy as 'change in law,' entitling Adani to compensation under their Power Purchase Agreement. The judgement emphasized restoring Adani's economic position as if the change hadn't occurred.

In a significant legal development, the Supreme Court has dismissed an appeal from Rajasthan's power distribution companies, affirming a decision from the Appellate Tribunal for Electricity (APTEL) in favor of Adani Power Rajasthan Ltd (APRL).

Justices M M Sundresh and Rajesh Bindal found no merit in the appeal filed by Jaipur Vidyut Vitran Nigam Ltd and other Rajasthan Discoms, upholding APTEL's judgment that Coal India Limited's levy represented a 'change in law' justifying compensation under the Power Purchase Agreement (PPA) with Adani Power.

The case, centered on a 2017 Coal India Limited notification imposing evacuation facility charges, saw the Rajasthan Electricity Regulatory Commission partially support Adani's claims. Justice Sundresh underscored the need to restore Adani Power's economic position prior to the law change, dismissing the appeal comprehensively.