Cyril Amarchand Mangaldas secures significant relief from MERC enforcing Supreme Court judgment on Railways’ CSS & AS liability
The leading law firm Cyril Amarchand Mangaldas successfully represented Maharashtra State Electricity Distribution Company Limited (MSEDCL) before the Maharashtra Electricity Regulatory Commission (MERC) in a significant regulatory development. The ruling marks an important enforcement milestone following the Hon’ble Supreme Court’s judgment dated 8 May 2026, concerning Indian Railways’ liability to pay Cross Subsidy Surcharge (CSS) and Additional Surcharge (AS) on open access electricity consumption, reinforcing regulatory compliance and recovery of substantial dues in the power sector.
First Implementation of Supreme Court Judgment
This is the first order by any State Electricity Regulatory Commission implementing the Hon’ble Supreme Court’s judgment dated 8 May 2026, which conclusively upheld the liability of Indian Railways to pay CSS and AS charges on open access consumption.
The ruling ensures that the Supreme Court’s decision is effectively translated into regulatory enforcement at the state level.
Significant Regulatory Development
The order represents a decisive step towards reinforcing regulatory discipline and ensuring timely recovery of legitimate dues in the power sector.
It also highlights the strengthened authority of regulatory commissions in enforcing compliance following judicial pronouncements.
Representation
The Cyril Amarchand Mangaldas represented MSEDCL in the matter, with the team led by Vishal Binod (Partner), supported by Sagnik Maitra (Senior Associate) and Swadha Sharma (Associate).
Conclusion
This landmark ruling underscores the importance of timely enforcement of judicial decisions within the regulatory framework. It reinforces the principle that statutory liabilities, once affirmed by the Hon’ble Supreme Court, must be strictly implemented by regulatory authorities. The decision also strengthens the recovery mechanism in the power sector and sets a precedent for future enforcement actions.
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