Bombay HC: Businesses Misuse Electricity, Court Upholds MSEDCL's Stance

Summary: The Maharashtra State Electricity Distribution Company Ltd. (MSEDCL) clashed with several businesses over unauthorized electricity use in Mumbai. The court sided with MSEDCL, emphasizing the importance of following electricity rules.

Background of the Case

In a series of legal requests filed in 2012, the Maharashtra State Electricity Distribution Company Ltd. (MSEDCL) took action against several businesses in Mumbai, including Solar Luminaries. These cases were heard in the Bombay High Court, overseen by Judge Amit Borkar, with the decision reserved on November 20, 2025, and announced on November 28, 2025.

MSEDCL's Stand

MSEDCL, a government-owned electricity provider, claimed that these businesses were using electricity without permission. The company argued that the electricity meant for industrial use was being used for business activities without proper disclosure or approval. They said this broke the rules under Sections 126 and 135 of the Electricity Act, 2003.

"MSEDCL seeks the Court's help to stop loss of public money. It wants to bring back rule-following." - MSEDCL

Respondent's Argument

The businesses, including Solar Luminaries, argued that they didn't know about any changes in electricity rates and that their work was industrial, not business-related. They said any changes in rate categories should have been clearly announced by MSEDCL.

"Solar Luminaries claimed that the issue is only about rate changes, not unauthorized use."

Court's Findings

Judge Amit Borkar found that the businesses were indeed using electricity for unauthorized business purposes. The court stressed that not knowing about rate changes is not a valid excuse, as rate orders are official once published in the government records.

"Not knowing about the rate order is no excuse; it becomes official once published."

SSI Registration and Its Implications

The court also talked about Small Scale Industries (SSI) registration, explaining that such registration is specific to a location and cannot be used to justify activities in other places without proper approval.

Judgment

The court canceled the order dated August 1, 2011, and reinstated the final assessment dated March 26, 2010, issued by MSEDCL. This decision highlighted the importance of using electricity as authorized and the legal consequences of breaking the rules.

"The challenged order cannot stand. The Authority misunderstood the issue."