Telangana High Court on Tuesday directed the Union Ministry of Power not to initiate any coercive steps against the Telangana government and the State’s power utility companies over the ₹6,757 crore dues being claimed by Andhra Pradesh government.
A bench of Chief Justice Alok Aradhe and Justice T. Vinod Kumar, after hearing an interim application filed by the Telangana government seeking extension of the interim order issued by the HC in September last year, posted the matter for August 24. The bench observed that it would, it was hoped, adjudicate the plea that day since the matter was important for both States.
The State government filed a writ petition in September 2022, challenging the Union Power Ministry’s order issued under Section 92 of the Andhra Pradesh Re-Organisation Act instructing it to pay ₹6,756.92 crore to AP government towards power dues. The HC bench passed an interim order to the Union of India not to take any coercive steps against the State government in the matter.
Subsequently, senior counsel of Telangana and AP governments presented their contentions on different days. The Telangana government filed the interim application in the backdrop of the statement made by Union Minister for Power in the Rajya Sabha on August 1. The government contended that the Union Minister said in the Rajya Sabha that the amount to be paid by Telangana to AP towards supply of power had been finalised.
The Central government consulted the Ministries of Law and Finance to direct the Reserve Bank of India to deduct the sum from the funds of the Telangana government.
Citing these statements of the Union Minister, the Telangana government maintained that in fact AP government would have to pay nearly ₹20,000 crore towards power used from the Telangana region even after setting off the ₹6,756.92 crore dues being claimed by it.
Supreme Court senior counsel C.S. Vaidyanathan and former Advocate General of undivided HC for AP C.V. Mohan Reddy appeared virtually for Telangana and AP respectively and presented their arguments on the matter.
