Telangana High Court Upholds ₹4.2 Crore Power Dues Against Sanghi Polymers
Hyderabad: The Telangana High Court has upheld a demand of ₹4.2 crore in electricity arrears against Sanghi Polymers Private Limited, stressing that electricity, as a public utility, must be used responsibly and statutory charges paid on time.
A division bench of Justice Moushumi Bhattacharya and Justice Gadi Praveen Kumar delivered the judgment on December 30, 2025.
Power utility’s demand challenged
The dispute arose after Southern Power Distribution Company of Telangana Limited issued a demand notice in August 2022, seeking payment of Grid Supporting Charges accumulated between the 2002–03 and 2008–09 financial years.
The arrears total ₹4.21 crore, comprising ₹1.03 crore as principal and ₹3.18 crore as surcharge.
A single judge had dismissed Sanghi Polymers’ writ petition in November 2025, leading the company to file an appeal.
Arguments from both sides
Counsel for Sanghi Polymers argued that Sanghi Polyesters was under liquidation and that any outstanding dues should be claimed through the liquidator. He also submitted that disconnection of power would affect 16 other companies, a temple in Sanghinagar, and nearly 1,000 families.
Counsel appearing for the power utility countered that under a 2020 agreement, Sanghi Polymers had undertaken to clear all arrears and comply with tariff provisions.
Court on public utilities and liability
The High Court underlined that electricity and water are finite public resources requiring large public investment in generation, transmission and distribution. Such resources, the bench said, must be used in accordance with law.
The court noted that the issue of Grid Supporting Charges had already been settled by the Supreme Court in November 2019 in Transmission Corporation of Andhra Pradesh Limited vs Rain Calcining Limited. It held that Sanghi Polymers had assumed liability for the dues by signing a fresh agreement in May 2020, agreeing to pay all charges linked to the service connection.
