Supreme Court Stays HP High Court Order on Water Cess Refund...

Shimla: The Supreme Court of India has stayed an order by the Himachal Pradesh High Court that had directed the state government to refund water cess imposed on power projects operating in the state.

The Supreme Court bench, led by Chief Justice of India DY Chandrachud, upheld the High Court's ruling that the water cess legislation was unconstitutional.

However, the Apex Court ruled that the funds collected from companies as water cess will be stayed until the Court hears the case in July this year.

Over 39 companies have challenged the state government's law levying water cess on power projects.

According to sources, the state imposed the water cess to generate additional funds.

So far the state water Commission constituted by the government has collected water cess from over 25 companies.

Over 39 companies including the central  public sector undertakings like NHPC, SJVN and NTPC which run power projects in Himachal have moved the court challenging the state government law charging water cess.