Representing JSW Energy and JSW Steel, Cyril Amarchand Mangaldas secured a significant Karnataka High Court ruling quashing KERC’s captive status verification procedure. The judgment provides major relief to captive power users and reinforces the regulatory framework governing captive power projects.
Cyril Amarchand Mangaldas represented JSW Energy Limited and JSW Steel Limited in a landmark dispute before the Karnataka High Court, resulting in the quashing of a captive status verification procedure introduced by the Karnataka Electricity Regulatory Commission (KERC).
The ruling marks an important victory for captive power users.
On June 12, 2026, the Karnataka High Court set aside the “Captive Status Determination Procedure” (the “Impugned Procedure”), issued by KERC through an order dated March 28, 2025.
The Impugned Procedure sought to impose additional, more stringent captive qualification requirements that went beyond what is contemplated under Rule 3 of the Electricity Rules, 2005 (as applicable at the time the procedure was issued) (“Rule 3”).
In its judgment, the Karnataka High Court held,
- The Impugned Procedure to be ultra vires Rule 3, i.e., beyond the authority granted by the governing statutory framework.
- Noted that the procedure was issued without public consultation, impacting stakeholders without following the required process.
- Directed KERC to develop a fresh procedure that aligns with Rule 3, following a due consultative process and the principles of natural justice.
The matter was led by:
- Ramanuj Kumar (Partner & Co-Head – Projects (Energy & Energy Transition))
- Lomesh Kumar Nimduri (Partner & Head – Disputes, South India)
- Vishal Binod (Partner)
They were supported by Sagnik Maitra and Twinkle Chadwa (Senior Associates), and Ajay T.K. and Swadha Sharma (Associates).
This decision is expected to have meaningful consequences for captive power and industrial consumers in Karnataka.
By invalidating the procedure, the High Court reinforced that regulatory bodies must remain within the boundaries of statutory provisions and must adopt transparent, consultative, and fair processes when decisions affect regulated stakeholders.
Cyril Amarchand Mangaldas (CAM) is widely regarded as one of India’s premier law firms, known globally for advising clients with consistent trust and reliability. The Firm represents a broad mix of domestic and international clients—ranging from commercial businesses and financial institutions to private equity and venture capital funds, start-ups, and even government and regulatory authorities.