Adani Power Limited has informed the Exchange about Update on pending litigation
ADANIPOWER · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
Awaiting price reaction for this filing.
Adani Power's subsidiary Mahan Energen Ltd. (MEL, formerly Essar Power M.P. Limited) won an appeal at the Appellate Tribunal for Electricity (APTEL) on August 29, 2025. The tribunal set aside a Rs. 2,632.54 crore relinquishment charge that had been imposed on MEL by the Central Transmission Utility of India Limited (CTUIL) following a CERC order from October 2019. APTEL declared CTUIL's claim as infructuous and ruled that the relinquishment compensation stands extinguished in law. This resolves a long-pending litigation that the company had first flagged to the exchanges in August 2023.
Very positive for shareholders — a potential Rs. 2,632.54 crore liability on the subsidiary has been wiped out, strengthening Adani Power's balance sheet and removing a major overhang on the stock. Investors should expect improved earnings outlook and reduced provisioning risk for MEL going forward.