JSW Energy Subsidiary Faces ₹1,447 Crore Water Charge Demand in Chhattisgarh
JSW Energy's subsidiary, JMPCL, received a ₹1,447.34 crore demand for water charges from Chhattisgarh. The demand relates to a period before JMPCL's IBC resolution plan approval. JSW Energy believes the claim is extinguished as per the NCLT order and has challenged the demand in the Chhattisgarh High Court.
The demand of ₹1,447.34 crore is substantial, and while the company believes it is extinguished, the ongoing litigation poses a potential financial and operational risk.
The company is facing a significant financial demand, which, although disputed, represents a material litigation event.
JSW Mahanadi Power Company Limited (JMPCL), a subsidiary of JSW Energy Limited, has received a demand of ₹1,447.34 crore from the Water Resources Division in Janjgir, Chhattisgarh. This demand primarily pertains to water charges from a period before the approval of JMPCL's resolution plan under the Insolvency and Bankruptcy Code, 2016 (IBC).
The National Company Law Tribunal (NCLT), Hyderabad, in its order dated 13th February 2025, approved the resolution plan and stated that all crystallized and unclaimed liabilities of JMPCL as of that date were extinguished. The NCLT further ruled that no creditors could claim anything beyond the liabilities specified in the resolution plan. JMPCL has been consistently paying water charges post the implementation of the resolution plan.
JSW Energy Limited believes that, based on IBC judicial precedents and the NCLT's Plan Approval Order, the aforementioned demand is extinguished and not payable. Consequently, JMPCL has initiated legal proceedings to challenge this demand before the Hon’ble High Court of Chhattisgarh at Bilaspur.
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JSW Energy Limited filed this with the NSE as a statutory disclosure, categorised under litigation updates. It is a primary document, not a recommendation, and the desk marks it medium impact: worth reading, rarely worth acting on by itself.
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See the model portfoliosA plain-language summary of a public exchange filing by JSW Energy Limited. Read the original for the full detail.