Sep 05, 2023

Transmission Licensees across India breathe a sigh of relief

The Udupi Kasargode Transmission Project (‘Project’), a key power project in the southern grid faced a challenge in relation to the validity of a ‘prior approval’ granted to the transmission licensee. In their writ petition[1]  the landowners argued that the power to grant prior approvals could not be delegated to the Central Electricity Authority (‘CEA’) by the Ministry of Power, and the argument was accepted by a Hon’ble Single Judge of the High Court of Karnataka.

As the CEA had granted prior approvals to several critical electricity transmission projects for close to a decade, this judgment also posed the potential threat of licensees abandoning several key projects and causing financial losses to multiple players in this sector.

The transmission licensee filed an appeal before the Division Bench of the High Court of Karnataka (‘Appeal’). The delegation of power was upheld by way of judgement dated July 27, 2023[2] as the Division Bench of the High Court of Karnataka stated that landowners aggrieved by electricity transmission projects should not invoke the writ jurisdiction of the court, and should seek appropriate remedies insead.

The AZB team appeared for the transmission licensee.

Access the order here.

[1] Writ Petition No. 20819 of 2021.

[2] Writ Appeal No. 560 of 2023.




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