Court Orders Infosys to Pay Rs 2.5 Crores to TANGEDCO Amid Tariff Dispute


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New Delhi (15/06/2024): The Acting Chief Justice Bench has directed Infosys to pay Rs 2.5 crores to TANGEDCO, following an appeal and heated arguments between Vijay Narayan, representing Infosys, and P. Wilson for TANGEDCO.

The dispute centers around the application of Tariff III charges for Infosys’ BPO activities from 2009 to 2010 and commercial tariff rates for various amenities within its campus. A single judge previously rejected Infosys’ writ petition and mandated the payment, stating that Infosys’ campus included commercial activities such as food courts, banks, and clubs under various trade names, without physical segregation from its industrial tariff-permitted areas.

P. Wilson argued that Infosys admitted to the BPO activities, and therefore, Tariff III, as fixed by the Tamil Nadu Electricity Regulatory Commission (TNERC), must be applied. He also contended that the commercial activities on Infosys’ premises could not benefit from industrial tariff rates due to the TNERC’s 2017 tariff regulations.

On the other hand, Vijay Narayan claimed that TANGEDCO’s dues were barred under section 56(2) of the Electricity Act, arguing that no amount could be recovered for BPO usage. He further asserted that the amenities in question were meant for employee welfare, and thus, a concessional industrial tariff should apply.

Wilson countered that the tariffs fixed by TNERC have statutory backing and are non-negotiable. He cited a Supreme Court judgment to argue that the limitation period for dues is subject to two years from when arrears are recorded on the white meter card and continuously shown as recoverable, a condition met in this case.

After considering the arguments, Acting Chief Justice Mahadevan and Justice Mohammed Shaffiq directed Infosys to pay Rs 2.5 crores within two weeks as an interim measure and scheduled further hearings on the matter.


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