In Brief
The Kerala State Electricity Regulatory Commission issued a tariff notification segregating Self-Financing Educational Institutions (SFEIs) into a higher "Commercial" tariff category, while Government and Government-Aided institutions received Non-Domestic rates. SFEIs challenged this as arbitrary and violating Section 62(3) of the Electricity Act, 2003. The High Court Division Bench struck down the differentiation. The Supreme Court reversed, holding that the Commission could lawfully differentiate based on the 'purpose' of supply. State-funded institutions serve tax-payer-supported social welfare, while SFEIs are self-financing with different student demographics. Both being educational does not preclude separate tariff treatment. The Court upheld the Commission's exercise as neither showing undue preference nor unlawful discrimination.
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