Omnicore Weekly #256 - 24 April 2026

Dear Patrons & Readers,

Petitioner: Avaada MH Sustainable Private Limited (AMHSPL)

Versus

Maharashtra State Electricity Distribution Co. Ltd. (MSEDCL)

Background: M/s. Avaada MH Sustainable Private Limited (AMHSPL) has filed this Petition on 5 June 2024 under the Section 86 of the Electricity Act, 2003 seeking compensation against Change in Law on account of GST Notifications dated 30 September 2021 & 14 October 2021 wherein the Goods and Services Tax is revised from 5% to 12% and 13.8%.

Petitioner's Prayers:

a) Admit the instant Petition.

b) Acknowledge, approve and declare the issuance of GST Amendment Notifications, as a ‘Change in Law’ event under Article 9 of the PPA.

c) Hold and declare that the Petitioner is entitled to claim relief under Article 9 of the PPA for the additional expenditure incurred on account of the occurrence of the ‘Change in Law’ event, i.e., issuance of the GST Amendment Notifications.

d) Direct the Respondent/MSEDCL to pay compensation of Rs. 47,75,06,348/- (Rupees Forty-Seven Crores Seventy-Five Lakhs Six Thousand Three Hundred Forty-Eight Only), to the Petitioner in lieu of the additional expenditure incurred on account of the aforesaid Change in Law event.

e) Direct the Respondent/MSEDCL to pay carrying cost to the Petitioner from the period of payment of additional expenditure on account of the aforesaid ‘Change in Law’ event, up to the date of reimbursement by the Respondent/MSEDCL.

f) In the alternative to prayer (d) above, direct the Respondent/MSEDCL to make payment of Rs. 47,75,06,348/- (Rupees Forty-Seven Crores Seventy-Five Lakhs Six Thousand Three Hundred Forty-Eight Only), towards ‘Change in Law’ compensation by way of annuity method by considering discounting factor at a rate which may be considered appropriate by this Hon’ble Commission.

g) Direct the Respondent/MSEDCL to reimburse the legal and administrative costs incurred by the Petitioner in pursuing the instant Petition.

h) Any errors/ omissions may kindly be condoned, and opportunity be kindly given to rectify the same and also submit additional pleadings at a suitable later date, if required.

i) Grant such order, further relief(s) in facts and circumstances of the case as this Hon’ble Commission may deem just and equitable in favor of the Petitioner.

Commission's View:

The Commission notes that the PPA provisions clearly stipulates that ‘If seller is affected by Change in Law and wishes to claim’ then Change in Law notice has to serve within 7 days. Thus, the Change in Law provision kicks in only if the seller wishes to claim such compensation and, if so, has to give notice within 7 days. The Commission observes that the term ‘shall’ used in clause 9.3.1 is emphasis on its mandatory nature. i.e., compulsory intimation of possibility of increase in cost to the procurer due to Change in Law events.

AMHSPL’s reliance on the Commission’s earlier Orders dated 27 May 2023 (M/s Juniper Green Field Pvt. Ltd. v. MSEDCL) and dated 24 May 2023 (M/s ReNew Sun Bright Private Ltd. (RSBPL) v. MSEDCL) does not support its case, as the factual matrix in those matters was different. In the Juniper case, Chane in Law issued a notice within 17 days and the Commission held that the same was issued after being aware of the impact of the Change in Law event. In ReNew case, Change in Law notice was issued after 5 months from Change in Law event, but in that case, only document available to demonstrate knowledge of Change in Law event was letter from supplier and Change in Law notice was issued within 7 days from such letter of supplier. Therefore, the Commission has accepted that said Change in law notice was issued within mandatory 7 days period. In the present case, although AMHSPL contends that it has issued a Change in Law notice within 7 days from receipt of clarification from its Supplier/ EPC contractor, the documents submitted in the present proceeding demonstrate that AMHSPL has been receiving invoices at an increased GST rate since October 2021 itself. Considering such documentary evidence, AMHSPL’s contention of relying on September 2022 clarification from Supplier/EPC contractor cannot be accepted in the present matter.

In view of the analysis, the Commission is of the opinion that the mandatory condition of issuing notice within 7 days cannot be ignored by the Commission. The documents do not support AMHSPL’s argument that it became aware of the Change in Law Notification in September 2022, one year after the Notification. Therefore, as AMHSPL has failed to comply with this mandatory condition of PPA within a reasonable time, it is not eligible to claim Change in Law compensation on this account.

Highlights from the week of
17 April 2026 to 24 April 2026