Telangana High Court dismisses Margadarsi’s petition challenging ₹81.12 lakh cross-subsidy charges

HYDERABAD The Telangana High Court dismissed a writ petition filed by M/s Margadarsi Chit Fund Private Limited challenging the demand notices issued by Margadarsi Chit Fund Private Limited to pay ₹81.12 lakh cross subsidy charges for the financial years 2005-06 to 2014-15. Justice Nagesh Bheemapaka of the High Court, dismissing the chit fund company’s petition, said the petitioner had not made out any case for interfering with the demand notices issued by the power distribution company.

The judge said in his order that a consumer seeking exemption from cross subsidy charges should satisfy the demand-issuing authority that its generator has a valid consent issued by the State government under section 43-A (1) (C) of Electricity Act-1948. The argument of the chit fund company that GOs 93 of 1997 and 112 of 1998 (cited by it) contending that they amount to be consent cannot be accepted the judge said.

The petitioner sought time to produce the consent under the Electricity Act but could not do so, the verdict said.