Supreme Court Upholds Adani Power’s Right to Compensation for ‘Change in Law’

The Supreme Court has affirmed Adani Power Rajasthan Ltd’s (APRL) right to compensation under its Power Purchase Agreement (PPA) with Rajasthan's power distribution companies, including Jaipur Vidyut Vitran Nigam Ltd (JVVNL). 

The dispute arose from a December 2017 notification by Coal India Ltd (CIL) imposing a ₹50 per tonne Evacuation Facility Charge (EFC), which APRL claimed constituted a "change in law" under Article 10 of the PPA.

The Court applied the principle of restitution and said Adani Power must be restored to the same economic position as before the levy and is entitled to compensation and late payment surcharge as per the PPA.