On May 21, Vedanta Limited disclosed to stock exchanges that the Supreme Court of India has ruled against its subsidiary, Talwandi Sabo Power Limited (TSPL), in a case concerning the misdeclaration of power availability. This ruling imposes a hefty penalty of approximately ₹127 crore, along with applicable late payment surcharges. The decision follows an appeal brought by the Punjab State Power Corporation Limited (PSPCL) and the Punjab State Load Despatch Centre (PSLDC) against a previous ruling by the Appellate Tribunal for Electricity.
The Supreme Court's ruling, dated May 20, effectively overturned the March 18, 2025, judgment from the Appellate Tribunal, reinstating the earlier order issued by the Punjab State Electricity Regulatory Commission (PSERC). In its judgment, the court upheld the penalty imposed on TSPL for allegedly misdeclaring power availability in January 2017, a violation of the provisions set forth in the Grid Code.
- Supreme Court ruling — upheld penalty against TSPL for misdeclaration.
- Penalty amount — ₹127 crore plus applicable surcharges owed to PSPCL.
- TSPL's equity shares — currently being listed on BSE and NSE post-demerger.
Following the ruling, Vedanta stated that TSPL is now required to pay approximately ₹127 crore to PSPCL, in addition to any late payment surcharges that may apply. This decision marks a significant regulatory setback for TSPL, which is currently in the process of listing its equity shares on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) after spinning off its merchant power operations from Vedanta Limited.
In its regulatory filing, Vedanta emphasized the gravity of the Supreme Court's decision, which not only reinstates the penalty but also underscores the ongoing challenges faced by power companies in adhering to regulatory standards. The company’s compliance team, represented by Company Secretary Prerna Halwasiya, communicated the ruling to stock exchanges, while the disclosure from TSPL was signed by Bhagya Hasija, their Company Secretary. As the regulatory landscape evolves, TSPL must navigate these challenges while maintaining operational integrity and investor confidence.
