06 May,2009 02:48 PM IST | | PTI
The Supreme Court on Wednesday upheld the Maharashtra Electricity Regulatory Commission's (MERC's) approval of the purchase agreement that allows Tata Power to allot 800 MW to Brihanmumbai Electric Supply and Transport (BEST) and 500 MW to Reliance Energy.
With this judgment, the apex court has set aside the Appellate Tribunal for Electricity's ruling that directed MERC to consider Reliance Energy's claim over power generated by Tata Power.
A bench headed by Justice SB Sinha, while setting aside the tribunal order, also imposed a penalty of Rs one lakh on Reliance Energy for each of the six petitions filed by Tata Power and BEST against the Anil Ambani group firm, making for a total of Rs six lakh.
After the judgment, the Reliance Energy counsel submitted before the court that the firm has reached an understanding with Tata Power on the sharing arrangement and it (Reliance Energy) may be permitted to file the terms of the settlement in the court.
However, the Tata counsel said, "We are still in the process of negotiation."
The apex court has also set aside the tribunal's order that called for equitable distribution of available power to all Mumbai consumers, irrespective of prior arrangements of power suppliers.
