Delhi High Court - Orders
Bses Rajdhani Power Limited & Anr vs Government Of Nct Of Delhi & Ors on 18 December, 2025
$~50
* IN THE HIGH COURT OF DELHI AT NEW DELHI
+ W.P.(C) 3448/2023 & CM APPL. 79831/2025, CM APPL.
79832/2025
BSES RAJDHANI POWER LIMITED & ANR. .....Petitioners
Through: Mr. Sandeep Sethi, Mr. Buddy A.
Ranganadhan, Sr. Advs. with Mr.
Anupam Varma, Mr. Aditya Gupta,
Mr. Yash Srivastava, Ms. Shefali, Mr.
Krishna Gambhir, Ms. Shreya Sethi,
Advocates (M:9818384751)
versus
GOVERNMENT OF NCT OF DELHI & ORS. .....Respondents
Through: Mr. Dhruv Rohatgi, Ms. Chandrika
Sachdev, Mr. Dhruv Kumar,
Advocates for GNCTD
(M:9643400939)
CORAM:
HON'BLE MS. JUSTICE MINI PUSHKARNA
ORDER
% 18.12.2025 CM APPL. 79832/2025
1. The present application has been filed on behalf of the BSES Rajdhani Power Limited ("BRPL") and BSES Yamuna Power Limited ("BYPL") seeking urgent directions against the Standard Operating Procedure on Subsidy Accounting and Payment dated 18th August, 2025, issued by the Government of NCT of Delhi ("GNCTD").
2. Learned Senior Counsel appearing for the petitioners submits that the SOP of the GNCTD is without any authority of law, illegal and arbitrary. The SOP of the GNCTD is in violation of the SOP issued by the Central This is a digitally signed order.
The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 22/12/2025 at 21:06:03 Government.
3. Learned Senior Counsel for the applicants has drawn the attention of this Court to the SOP issued by the GNCTD on 18th August, 2025, and draws the attention of this Court to the following paragraphs:
"xxx xxx xxx The points detailed hereunder, are the elaboration of clause no. 2.3
(xi) of the "Standard Operating Procedure (SOP) on Subsidy Accounting and Payment" issued by Ministry of Power, GoI on 03.07.2023:
xxx xxx xxx ii. DISCOMs will forward the total projected amount for the subsidy to be released for the upcoming FY to Department of Power before start of the FY i.e. preferably in the month of February of the preceding FY.
iii. The Department of Power shall release the assessed subsidy amount in advance to DISCOMs for every quarter within the first 15 days of the start of the quarter. To adhere the time line of 15 days in releasing the advance subsidy to Delhi DISCOMs viz-a-viz by following the other laid down procedures, below steps are to be followed:
xxx xxx xxx f. DISCOMs are required to ensure timely payment of the regular dues of transmission and generating companies. In case of any default on the part of DISCOMs, Power Department shall retain its right to divert the subsidy payable to these companies to clear their dues. xxx xxx xxx v. The Power Department will ensure the balance payment of reconciled subsidy of the previous quarter within 30 days of receipt of the subsidy bill from the DISCOMs. In case of any excess amount, the same shall be adjusted in subsequent Quarter Subsidy payment. xxx xxx xxx vii. On receipt of such trued-up figures from DERC, Power department will adjust the short-fall /Excess amount, if any in the subsequent quarter subsidy payment.
viii. The remaining contents of the "Standard Operating Procedure (SOP) on Subsidy Accounting and Payment" Issued by Ministry of Power, GoI on 03.07.2023, shall remain unchanged.
This is a digitally signed order.
The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 22/12/2025 at 21:06:03 xxx xxx xxx"
4. In contrast, the SOP issued by the Central Government contains different provisions. It is submitted that there is no provision under the Central SOP which allows for adjustment of the subsidy payable to Discoms to be adjusted against the alleged dues of the generation of transmission companies. Attention of this Court has been drawn to the following paragraphs of the Standard Operating Procedure of the Central Government, which read as under:
"xxx xxx xxx 2.3. Subsidy billing and collection by DISCOMs ix. DISCOMs/PDs shall assess consumer category-wise tariff subsidy to be provided by the State Government/UT Administration in advance based on the sales forecast and per unit subsidy rates announced by the State Government/ UT Administration.
x. DISCOMs/UTs will forward the monthly/quarterly subsidy disbursal plan to the State Government/ UT Administration and request the State Government/ UT Administration to release the subsidy amount in advance for each month/quarter. The Subsidy to be paid by the State Government/ UT Administration shall not be less than the quarterly/monthly subsidy assessed by the Discoms/PD or the reconciled amount of the subsidy for the corresponding period in the previous year, whichever is lower. xi. The State Government/ UT Administration shall release the assessed subsidy amount in advance to DISCOMs/ PDs for every month/ quarter within the first 7 days of the month/within the first 15 days of the start of the quarter.
xxx xxx xxx xiv. DISCOMs/PDs shall raise bill of subsidy due to concerned department of State Government on quarterly basis net of advanced subsidy paid for the quarter with a copy to the concerned SERC/JERC. This exercise shall be completed along with necessary billing and collection details within 60 days of end of the relevant quarter.
xv. The concerned department of the State· Government shall ensure the balance payment of reconciled subsidy of the last quarter within 30 days of receipt of the subsidy bill from the DISCOM/PD for the last This is a digitally signed order.
The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 22/12/2025 at 21:06:03 quarter. The advance subsidy payment of the next quarter shall be paid as per clause 2.3 (xii) and it shall not be linked with the settlement of the subsidy bill of the previous quarter (Annexure-I). xxx xxx xxx"
5. By referring to the aforesaid, learned Senior Counsel for the applicants submits that the SOP of the Central Government makes provisions for direct release of the subsidy to the Discoms and not to the Delhi Utilities.
6. Thus, the present application has been filed seeking directions that the SOP on Subsidy Accounting and Payment dated 18th August, 2025, issued by the GNCTD, is not enforceable, being violative of the Central Government's SOP read with the Electricity Act, 2003 and Rule 15 of the Electricity Rules, 2005, as amended from time to time.
7. Learned Senior Counsel for the applicants also relies upon the Notification dated 29th December, 2022 in this regard, by which the Electricity Amendment Rules, 2022, was notified. He relies upon Rule 15 of the same, which reads as under:
"xxx xxx xxx
15. Subsidy Accounting.--Accounting of due subsidy for the purpose of section 65 of the Act, shall be done by the distribution licensee, in accordance with the Standard Operating Procedure issued by the Central Government, in this regard.
xxx xxx xxx"
8. Referring to the aforesaid, it is submitted that subsidy is to be distributed in accordance with the SOP issued by the Central Government, as per the amended Electricity Rules.
9. Issue notice. Notice is accepted by learned counsel for respondent nos. 1 and 2.
10. Issue notice to respondent no. 3 by all modes.
This is a digitally signed order.
The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 22/12/2025 at 21:06:03
11. Learned counsel for respondent nos. 1 and 2 submits that the SOP has been finalized by the GNCTD during the pendency of the present writ petition.
12. She further submits that in case the applicants have any grievance with the SOP of the GNCTD, that would constitute a separate cause of action, for which the applicants ought to file an independent writ petition.
13. She further submits that outstanding dues of approximately Rs. 28,000/- Crores, is due and payable by the Discoms to the respondents.
14. Let reply be filed within a period of two weeks. Rejoinder thereto, if any, be filed within a period of one week, thereafter.
15. Re-notify on 05th January, 2026.
CM APPL. 79831/202516. The present application has been filed on behalf of the BRPL and BYPL, seeking urgent directions to the GNCTD to directly release the subsidy for the Fourth Quarter of Financial Year 2025-26, to the BSES Discoms.
17. Learned Senior Counsel for the applicants/petitioners submits that the BRPL and BYPL, by their letters dated 17th September, 2025 and 25th September, 2025 respectively, have given estimates for Quarter 3 of the Financial Year 2025-26 and have also requested the GNCTD to directly release the subsidy to the BSES discoms.
18. It is submitted that urgency of the present application is occasioned by peculiar situation, wherein, subsidy being released/ to be released by the GNCTD to BSES Discoms, amounting to Rs. 2,997 Crores as per estimates provided by the applicants, is in excess of the current Financial Year's estimated power purchase/transmission dues payable to the Delhi Utilities This is a digitally signed order.
The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 22/12/2025 at 21:06:03 by BSES Discoms, which is amounting to Rs. 1,521 Crores. Thus, it is submitted that this will result in an excess payment and unjust enrichment by Rs. 1,476 Crores, in favour of the Delhi Utilities.
19. Attention of this Court has been drawn to the table as occurring in the present application, in Para 6.6 of the present application, to bring forth before this Court the amount of subsidy already diverted to the Delhi Utilities, i.e., the Generating Companies.
20. Thus, the present application has been filed, praying for directions to the GNCTD to release the entire subsidy to the applicants for Quarter 4 of the Financial Year 2025-26, i.e., from January, 2026 to March, 2026, which amounts to Rs. 728 Crores in total (Rs. 469 Crores to BRPL and Rs. 259 Crores to BYPL), directly to the applicants.
21. Issue notice. Notice is accepted by learned counsel for the respondent nos. 1 and 2.
22. Issue notice to respondent no. 3 by all modes.
23. Let reply be filed within a period of two weeks. Rejoinder thereto, if any, be filed within a period of one week, thereafter.
24. Re-notify on 05th January, 2026.
MINI PUSHKARNA, J DECEMBER 18, 2025/au This is a digitally signed order.
The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 22/12/2025 at 21:06:03