In Brief
A power generating station (Talwandi Sabo Power Limited) declared its electricity generation capacity to receive fixed capacity charges. When the grid operator issued real-time notices requiring the station to demonstrate it could actually produce the declared capacity within four 15-minute time blocks, the station failed to do so on four separate days in January 2017. The operator imposed a ₹162.74 crore penalty for "misdeclaration." The Supreme Court held that demonstrating declared capacity is a strict civil liability—no proof of intent or bad faith is required. The Court distinguished this from "gaming" (deliberately over-declaring for profit), which does require intent. The penalty was upheld because the station simply failed to prove its stated capability when tested, regardless of reason.
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