Taj Mahal Hotels Challenge Rs 1 Crore Power Surcharge in Telangana High Court
The management of Taj Mahal Hotels in Hyderabad has taken a bold legal step. They have approached the Telangana High Court to challenge a hefty cross-subsidy surcharge. The Telangana Southern Power Distribution Company Limited imposed this charge. It amounts to nearly Rs 1 crore. The surcharge covers the period from 2005-06 to 2014-15.
Details of the Power Demand
This financial burden stems from tariff orders issued by the Telangana Electricity Regulatory Commission. These orders relate to retrospective energy charge demands. Under the established tariff framework, TGSPDCL sent formal demand notices to the hotels.
The Abids branch received a notice for Rs 27,58,378. Sundar Rao Hotels Private Ltd operates this property. The Secunderabad branch faced a demand of Rs 77,72,135. Sundar Taj Mahal Hotels manages this location.
Legal Battle and Court Proceedings
This is not the first time the hotels have sought judicial intervention. Earlier, the high court directed TGSPDCL to consider the objections raised by the hotel management. However, the power distribution company rejected these objections outright.
TGSPDCL stated that the petitioners failed to produce valid documentary evidence. This evidence was needed to establish their eligibility for an exemption. Aggrieved by this rejection, the hotel management approached the high court once again.
During the recent hearing, TGSPDCL made a significant submission. They argued that the electricity connections were liable for disconnection. This action would proceed unless the hotels paid 50 per cent of the demanded amount. The company actively sought the court's permission to disconnect the power supply.
Judicial Scrutiny and Concerns
The bench expressed clear concern over TGSPDCL's stand. Judges questioned the propriety of seeking judicial directions for disconnection. The court made a critical observation.
The electricity authorities had failed to follow prescribed statutory procedures. They were unable to discharge their duties in accordance with the law. Yet, they were seeking directions from the court to disconnect power supply. This request came while the legal matters were still under active consideration.
The bench posed a direct question. How could the court issue directions for disconnection under such circumstances? The situation presented a clear legal dilemma.
Court's Decision and Next Steps
The high court granted the petitioners an important opportunity. They can submit further contentions to support their case. Following this, the court adjourned the matter. The next hearing is scheduled for January 21. This gives both parties time to prepare their arguments more thoroughly.
This case highlights ongoing tensions between commercial establishments and utility providers. It underscores the importance of proper legal procedure in regulatory disputes. The outcome could set a significant precedent for similar cases in Telangana.
