SC rejects Essar's plea seeking exemption from power dues

In a major setback to Essar Steel, the Supreme Court on Tuesday rejected their plea seeking exemption from payment of electricity dues to the Gujarat Government.

A Bench of the apex court headed by Justice Arjan Kumar Sikri and also comprising Justice Ashok Bhushan, directed payment of Rs 1,038 crore of electricity dues by Essar Steel to the Gujarat Government.

The Essar Steel has ready paid around Rs. 500 crore.

The state government had first refused Essar group's claims for duty exemption on electricity in 2003.

Essar has been seeking electricity duty exemption for its power plant set up at Hazira but the Gujarat government had rejected its demand, as it sold power to other entities.

The state government had first refused Essar group's claims for duty exemption on electricity in 2003. It had asked the company to pay more than Rs 1,000 crore that was allegedly due.

Essar group had then approached the Gujarat High Court which had last year asked the company to pay the electricity duty to the state government. It was also rejected by the Gujarat High Court.

Essar then challenged it before the Apex Court, which also rejected its plea.