Hyderabad: The Telangana High Court has upheld a demand for Rs 4.21 crore in electricity arrears against Sanghi Polymers Private Limited, emphasising that electricity must be used responsibly and legal charges must be paid on time.
The division bench comprising Justice Moushumi Bhattacharya and Justice Gadi Praveen Kumar delivered the ruling on December 30, 2025.
Background of the dispute
The Southern Power Distribution Company of Telangana Limited (TGSPDCL) issued a demand notice in August 2022 to Sanghi Polymers for outstanding Grid Supporting Charges (GSC) accumulated between financial years 2002-03 and 2008-09.
The total amount comprises Rs 1.03 crore as principal and Rs 3.18 crore as interest (surcharge). When Sanghi Polymers challenged the demand before the High Court, a single judge dismissed the petition in November 2025, prompting the company to file an appeal.
Arguments presented
Advocate Avinash Desai, representing Sanghi Polymers, argued that the company Sanghi Polyesters is currently under liquidation and that any outstanding dues should be claimed through the liquidator.
He contended that disconnecting the power supply would affect not only Sanghi Polymers but also 16 other companies, the Sanghi temple, and approximately 1,000 families in Sanghinagar.
Advocate Sridhar Reddy, appearing for TGSPDCL, countered that according to the 2020 agreement, the company is obligated to pay the arrears.
Court’s observations on public utilities
The Telangana High Court emphasised the critical importance of electricity and water as finite resources essential for industrial, commercial activities, and daily life.
The bench stated that electricity generation, transmission, and distribution involve significant public investment in infrastructure, making it necessary to use such resources responsibly and in accordance with the law.
The court ruled that the GSC issue was conclusively settled by the Supreme Court’s November 2019 judgment in the case of Transmission Corporation of Andhra Pradesh Limited vs. Rain Calcining Limited.
The bench found that Sanghi Polymers effectively assumed responsibility for these dues when it signed a fresh agreement in May 2020, undertaking to comply with all tariff provisions and pay charges for the service connection.
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