The Supreme Court has dismissed a petition by Karnataka electricity distribution companies seeking to stay ₹1,005 crore in invoices issued by Adani Power. The court has directed the discoms to make the payment within 45 days, while the Appellate Tribunal for Electricity works toward a final resolution within three months.
The Supreme Court of India has dismissed a challenge filed by Karnataka’s electricity distribution companies (discoms) regarding invoices amounting to ₹1,005 crore issued by Adani Power. In a ruling delivered on Monday, a bench led by Justice PS Narasimha declined to intervene in the payment dispute, effectively upholding a directive that requires the discoms to clear the outstanding dues within a 45-day window.
This dispute originates from a 2023 order passed by the Central Electricity Regulatory Commission (CERC). The regulatory body had determined that the Karnataka discoms were liable to pay carrying costs on differential amounts, along with late payment surcharges (LPS) that accrued due to delays in earlier payment cycles. While Adani Power sought the recovery of these dues, the discoms contested the legitimacy of the invoices, arguing that the payments would create significant financial strain on their operations.
The Karnataka discoms had approached the apex court to stay the upload of these invoices on the government’s power transaction portal, contending that they were forced to make payments under protest to avoid potential disruptions in power supply. They argued that the CERC’s original order was flawed and that the Appellate Tribunal for Electricity (APTEL) should have reconsidered the case on its merits.
Following the Supreme Court's refusal to stay the process, the matter remains subject to a final decision. The court has directed APTEL to conclude the proceedings and issue a final judgment within the next three months. Until that timeline is met, the current payment mandate stands.
For investors, the development provides clarity on the immediate cash flow expectation for Adani Power regarding this specific claim. However, the broader context of payment cycles between power generators and state-owned distribution companies remains a standard monitorable in the power sector. The ability of distribution utilities to manage their working capital and liquidity—often impacted by high aggregate debt and operational inefficiencies—frequently leads to delays in payment, creating friction in the energy value chain.
Market movement for Adani Power shares on Monday was modest, reflecting general sector trends rather than an isolated reaction to this court update. The key monitorable for stakeholders remains the final verdict from APTEL, which will provide the definitive legal view on the applicability of these carrying costs and late payment surcharges.