Update on material litigation under Regulation 30(4) of the Securities Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (Listing Regulations)
Awaiting price reaction for this filing.
JSW Energy has informed the stock exchanges that four of its step-down wholly owned subsidiaries — Mytrah Vayu (Tungabhadra), Mytrah Vayu (Krishna), Mytrah Vayu (Pennar) and Mytrah Vayu (Indravati) — have filed writ petitions before the Andhra Pradesh High Court. The petitions challenge the constitutional validity of a specific provision in the Electricity (Late Payment Surcharge and Related Matters) Rules, 2022, which was cited by the Southern Power Distribution Company of Andhra Pradesh and the AP Power Coordination Committee to deny payment of legitimate dues. The total disputed amount, including late payment surcharge, is approximately Rs. 506.52 crores. The subsidiaries are essentially suing to recover these dues that the state discom has refused to pay.
This is a positive legal move by JSW Energy aimed at recovering Rs. 506.52 crores stuck in receivables. Depending on the High Court's ruling, it could lead to a significant cash inflow if the subsidiaries win, though the outcome remains uncertain at this stage.