Telangana High Court Refuses Interim Relief to GITAM on ₹118-Crore Power Dues

Hyderabad:The Telangana High Court on Monday declined to grant interim relief to GITAM University, which had sought directions to the Telangana Southern Power Distribution Company Limited (TGSPDCL, southern discom) for immediate reconnection of electricity supply that was disconnected two days prior due to outstanding dues of around `Rs 18 crore.

The disconnection followed developments last week, during which Justice Nagesh Bheemapaka of the High Court had taken serious note of the discom’s failure to initiate action against the university despite substantial unpaid electricity bills. Acting thereafter, the authorities disconnected power supply to the institution on December 19.

The secretary of GITAM University filed an interim application before the High Court contending that the disconnection of electricity had severely affected academic and administrative activities on the campus. The official submitted that around 8,000 students were impacted, and sought interim directions for restoration of power supply.

Appearing before the court, the University argued that it was not “running away” and contended that the electricity dues in question did not pertain to the university but belonged to VBC Ferro Alloys Ltd. It was argued that although VBC Ferro Alloys Ltd and GITAM University were under the same ownership, the dues were not attributable to the university.

GITAM University was established as part of business diversification by several members of the board of directors of VBC Ferro Alloys Ltd and later transferred to others. The university relied on a judgment of the Supreme Court that no electricity dues can be attached to the premises of the consumer.

Opposing the plea, N. Sreedhar Reddy, appearing for TGSPDCL, said that the entities were closely connected and faulted the stand taken by the university. He submitted that the electricity connection was disconnected only after issuing a statutory 15-day notice and informed the court that the issue of unpaid dues had been pending since 2020.

Justice Bheemapaka took exception to the stand of the petitioner, the secretary of the university, that he was not responsible for the dues of VBC Ferro Alloys Ltd, and pointed out that the chairman of the company was the petitioner’s grandfather. The court indicated that it would consider issuing directions for restoration of electricity supply up on payment of 50 per cent of the outstanding amount.

As counsel for the university was not agreeable to the proposal, the court adjourned the matter to December 24, granting time to the southern discom to place its contentions on record.