JSW Mahanadi Power Company Limited (JMPCL), a subsidiary of JSW Energy Limited, has received a ₹1,447.34 crore demand for water charges from the Water Resources Division of Chhattisgarh. The company is formally contesting this claim, arguing that the liability pertains to a period prior to the approval of its resolution plan under the Insolvency and Bankruptcy Code (IBC), and is therefore considered extinguished.
Dispute Over Historical Water Charges
JSW Energy has clarified its position regarding a substantial financial demand issued to its subsidiary, JSW Mahanadi Power Company Limited (JMPCL). The ₹1,447.34 crore demand originated from the Water Resources Division in Janjgir, Chhattisgarh. The company maintains that the vast majority of these charges relate to time periods predating the formal approval of the JMPCL resolution plan.
Legal Standing and Resolution Plan
The company draws confidence from the National Company Law Tribunal (NCLT) Hyderabad order dated February 13, 2025. This order established that all crystallised and unclaimed liabilities of the subsidiary existing as of the order date were extinguished upon the approval of the resolution plan. Consequently, JSW Energy asserts that the historical demand is legally unenforceable.
Current Status of Operations
JSW Energy emphasized that following the successful implementation of the resolution plan, JMPCL has been consistently and regularly paying its ongoing water charges. To resolve the dispute regarding the historical claims, JMPCL has initiated legal proceedings and challenged the demand before the Hon’ble High Court of Chhattisgarh at Bilaspur.
Source: BSE
