SC denies Adani Power’s Rs 1,376 crore LPS plea against Rajasthan discom

SC on Adani Power: The Supreme Court dismissed Adani Power’s plea seeking Rs 1,376.35 crore as Late Payment Surcharge (LPS) from Rajasthan discoms, on Monday.

Justices Anirudhha Bose and Sanjay Kumar held the plea as not maintainable.

Additionally, Adani Power was directed to pay a cost of Rs 50,000 to be deposited with the SC Legal Aid Committee.

Notably, the shares have dropped as much as 4.40 per cent to hit an intraday low of Rs 508 per share.

In August 2020, the Supreme Court ruled in favour of Adani Power, affirming its right to seek compensatory tariff from Rajasthan discoms for power supplied since 2013. Following the court’s decision, Rajasthan discoms had disbursed approximately Rs 6,000 crore in accordance with the judgment.

However, Adani Power has initiated fresh legal proceedings in the apex court, seeking an additional payment of Rs 1,400 crore, citing a Late Payment Surcharge (LPS).

According to Adani Power’s contentions, the court’s ruling mandated compensatory tariff payments for power supplied from 2013 onwards. Consequently, for these delayed payments, Adani Power asserts its entitlement to charge interest at the State Bank Advance Rate (SBAR) plus 2 per cent. Presently, the SBAR, or benchmark lending rate, stands at 14.85 per cent.

As of 10:54 am, shares of Adani Power were trading 1.27 per cent lower at Rs 524.65 per share.