In Brief
The State of Maharashtra (Water Resources Department) appealed against a High Court order that reduced irrigation restoration charges payable by Rattan India Power Limited from Rs. 1,00,000 per hectare to Rs. 50,000 per hectare, reducing total liability from Rs. 232.18 crores to Rs. 116.09 crores. These charges compensate for water diverted from irrigation to industrial use. The Supreme Court allowed the appeal, holding that Rattan India was estopped from challenging the charge amount after knowingly signing a contract stipulating Rs. 1,00,000 per hectare. The Court ruled that contractual rights crystallize on execution date, not earlier approvals, and found no discrimination in differential treatment of other power companies.
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