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The Appellate Tribunal for Electricity ("APTEL") through its judgment dated 08.01.2026 in the matter of Director, Aryan Renewable Energy Private Pvt. Ltd. v. The Secretary, Central Electricity Regulatory Commission & Ors.1, upheld the Central Electricity Regulatory Commission ("CERC") direction to Aryan Renewable Energy Private Limited to pay relinquishment charges for surrender of Long-Term Access ("LTA"), even though the generating project never commenced operations due to force majeure events.
The APTEL held that Regulation 18 of the CERC (Grant of Connectivity, Long-term Access and Medium-term Open Access in inter-State Transmission and related matters) Regulations, 2009 imposes a statutory liability to pay relinquishment charges once LTA is granted and the Bulk Power Transmission Agreement ("BPTA") is executed, regardless of whether the project becomes operational. The APTEL further held that statutory regulations override contractual provisions, and therefore the force majeure clause in the BPTA cannot negate the regulatory framework.
Footnote
1 Appeal No. 185 of 2018.
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