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JSW Energy Fights Rs 1,447 Crore Water Dues Notice in Chhattisgarh

JSW Energy's subsidiary, JSW Mahanadi Power, has received a demand notice for over Rs 1,447 crore in water charges from Chhattisgarh authorities. The company contends the claim is invalid, as the National Company Law Tribunal had approved a resolution plan that extinguished all prior liabilities. JSW Mahanadi Power has now challenged the demand in the Chhattisgarh High Court. This legal dispute comes alongside JSW Energy reporting a significant 2.5-fold increase in quarterly net profit.

Key Points: JSW Energy Subsidiary Challenging Rs 1,447 Crore Water Dues

  • Rs 1,447 crore water dues notice
  • NCLT-approved resolution plan cited
  • Subsidiary has challenged demand in High Court
  • Strong quarterly profit growth reported
2 min read

JSW Energy subsidiary gets Rs 1,447 crore water dues notice

JSW Energy subsidiary contests a Rs 1,447 crore water dues notice in Chhattisgarh, citing NCLT approval that extinguished past liabilities.

"The company believes... that the aforesaid claim stands extinguished and is not payable - JSW Energy"

Mumbai, April 21

JSW Energy Limited on Tuesday said its subsidiary, JSW Mahanadi Power Company Limited, has received a demand notice of Rs 1,447.34 crore from the Water Resources Division in Janjgir, Chhattisgarh, towards water charges, most of which relate to the period before the approval of its resolution plan under the Insolvency and Bankruptcy Code, 2016.

The company stated that the National Company Law Tribunal (NCLT), Hyderabad, had approved the resolution plan on February 13, 2025, and ruled that all crystallised and unclaimed liabilities of the subsidiary as of that date stand extinguished.

It also held that no creditor is entitled to claim any amount beyond what has been provided for in the resolution plan.

"JSW Mahanadi Power Company Limited, a subsidiary of JSW Energy Limited, has received a demand from the Water Resources Division, Janjgir, Chhattisgarh, seeking Rs 1,447.34 crores towards water charges," it said in its stock exchange filing.

Following the implementation of the plan, the company said JSW Mahanadi Power has been regularly paying its water charges.

"Post implementation of the resolution plan, JMPCL is regularly paying water charges," the firm said.

Citing judicial precedents under the IBC and the NCLT order, JSW Energy said it believes the current demand is not payable and has challenged it before the High Court of Chhattisgarh.

"The company believes, based on judicial precedents under the IBC and the Plan Approval Order, that the aforesaid claim stands extinguished and is not payable," it said.

"Accordingly, JMPCL has challenged the said demand before the High Court of Chhattisgarh at Bilaspur," it added.

On the financial front, JSW Energy reported strong growth in its latest quarterly performance.

The company posted a net profit of Rs 420 crore for the third quarter of FY26, compared to Rs 168 crore in the same period last year, marking a 2.5-fold increase driven by higher power generation and contributions from acquired assets.

- IANS

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Reader Comments

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Priyanka N
While I understand the legal position, it's concerning that such a large amount for water usage is being contested. Water is a precious resource, especially in states like Chhattisgarh. Companies, big or small, must be held accountable for their environmental and resource usage charges. Hope the court looks at the merit of the dues, not just the technicality. 🤔
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Aman W
Good to see JSW Energy posting strong profits! ₹420 crore net profit is impressive growth. This demand notice seems like a minor hiccup. With solid financials, they can handle this legal battle. Investors shouldn't worry too much.
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Sarah B
The IBC was designed to provide a clean slate and encourage resolution. If authorities keep digging up old dues, it defeats the entire purpose. This will discourage other companies from taking over stressed assets. The Chhattisgarh High Court should uphold the NCLT order firmly.
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Karthik V
₹1,447 crore is not a small amount! That's public money. Whether it's pre or post resolution, someone used the water and someone should pay for it. The article says they are paying current charges regularly, which is good. But the old dues... the original company that incurred them is gone. It's a tricky situation. The court's decision will set an important precedent.
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Nikhil C
Typical bureaucratic delay. The notice was probably sitting on someone's desk for years and now they've woken up. Meanwhile, the company has moved on, the resolution plan is approved, and they are contributing to the economy with profits and power generation. This is why "Ease of Doing Business" needs more than just policy changes on paper.

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