Hyderabad: GITAM University in Hyderabad has received interim relief from the Supreme Court in a dispute over alleged electricity dues of Rs 108 crore owed to the Telangana Southern Power Distribution Company Limited (TGSPDCL) by its associate entity, VBC Ferro Alloys.
SC instructs Rs 15 cr deposit from GITAM within 4 weeks
Modifying the Telangana High Court’s January 22 order directing payment of Rs 54 crore, the Supreme Court on Monday instructed that Rs 15 crore be deposited within four weeks in response to the demand notice issued by TGSPDCL.
The apex court said this arrangement would remain in force until the High Court’s single-judge bench delivers a final ruling on the nature of the relationship between GITAM and VBC Ferro Alloys.
The dispute arose after TGSPDCL issued a notice on September 12 last year, directing VBC Ferro Alloys to pay Rs 108 crore in outstanding dues along with Rs 10 crore in interest, totalling Rs 118 crore.
The discom warned that failure to clear the dues would result in the disconnection of the electricity supply to GITAM University.
GITAM approaches HC
GITAM approached the Telangana High Court challenging the notice. A single-judge bench directed restoration of power supply after obtaining an undertaking from GITAM stating that it would pay the dues with interest if a relationship between the university and VBC Ferro Alloys was established.
However, TGSPDCL challenged this order before a division bench of the High Court, which directed GITAM to deposit Rs 54 crore as an interim measure after hearing arguments from both sides.
GITAM moves SC
Aggrieved by the division bench’s order, GITAM moved the Supreme Court. A bench comprising Justice PS Narasimha and Justice Alok Aradhe heard the matter and modified the High Court’s directive, reducing the immediate deposit requirement to Rs 15 crore.
The Supreme Court also disposed of the petition while allowing the High Court’s single-judge bench to decide the core issue regarding the relationship between the two entities.
The final liability of GITAM University will depend on the High Court’s determination of whether it is legally connected to VBC Ferro Alloys and therefore responsible for the outstanding electricity dues.
