High Court rejects Margadarsi's challenge to ₹81.12 lakh electricity cross‑subsidy demand

Telangana High Court has thrown out a writ petition by M/s Margadarsi Chit Fund Private Limited that contested ₹81.12 lakh cross‑subsidy demand from Southern Power Distribution Company Limited for the 2005‑06 to 2014‑15 fiscal years. Justice Nagesh Bheemapaka ruled the chit fund failed to prove any ground to interfere with the notices. He noted that any consumer seeking relief must prove its generator holds a valid state consent under section 43‑A(1)(C) of the Electricity Act‑1948. The company’s reliance on Government Orders 93 of 1997 and 112 of 1998 as consent was rejected. Margadarsi asked for time to produce the required consent but could not furnish it, leading to the dismissal. The order was issued on November 5, 2026, and the court’s reasoning underscores the strict interpretation of statutory exemptions. The ruling may prompt other large consumers to review their consent documents before filing similar challenges. ## Context Cross‑subsidy charges are levied on certain electricity users to offset lower tariffs granted to others, such as agricultural consumers. The Electricity Act allows exemptions when a generator obtains explicit state approval, a step the court said was missing. The decision reinforces the procedural requirement for documented consent before any exemption can be granted.