Administrator
08 September 2026
The Supreme Court has declined to interfere with an interim Jharkhand High Court order allowing consumer advocacy group Energy Watchdog to place information before the State power utility in a probe into alleged unauthorised electricity supply and possible cross-subsidy surcharge evasion.
Power Sale Dispute Under Scrutiny
The case concerns Amalgam Steels and Power Ltd. and proceedings initiated by Jharkhand Bijli Vitran Nigam Ltd. (JBVNL) over alleged unauthorised supply of electricity from a captive power plant. JBVNL had issued demand notices involving more than ₹284 crore in cross-subsidy surcharge. Energy Watchdog had approached the High Court seeking scrutiny of the alleged power transactions.
SC Leaves Interim Arrangement Intact
A Bench of Justices Pamidighantam Sri Narasimha and Alok Aradhe declined to interfere with the High Court's interim direction permitting Energy Watchdog to participate by placing relevant facts before JBVNL. The Supreme Court found that the High Court's approach could not be termed perverse and did not warrant intervention under Article 136 of the Constitution.
The Court also noted the relevance of Section 94(3) of the Electricity Act, 2003, which permits representation of consumer interests in regulatory proceedings. However, it made clear that it was not deciding the underlying merits of the dispute.
Inquiry, Not Adjudication
The third party's role remains limited to providing information during the proceedings. The Supreme Court has left open the larger legal question of the scope of third-party intervention for the High Court's final consideration.
The Larger Question Remains Open
The ruling keeps the inquiry moving without prejudging whether the alleged power supply was unauthorised or whether the surcharge demands are ultimately sustainable. The immediate significance lies in preserving a mechanism for additional facts to reach the regulator while leaving the substantive dispute to be examined through the statutory process. The next stage will therefore turn on the evidence placed before JBVNL and the High Court's eventual determination of the legal framework governing third-party participation.
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