HC rejects Infosys plea on Tangedco’s Rs 6.7 cr shortfall bill
CHENNAI: The Madras High Court on Thursday dismissed a petition filed by IT major Infosys Ltd, challenging an order passed by State-run discom Tangedco, demanding the company to pay over Rs six crore as a shortfall amount. Justice GK Ilanthiraiyan dismissed the plea, which also sought to direct Tamil Nadu Generation and Distribution Corporation (Tangedco) to charge only industrial tariffs.
On perusal of the audit report, it is found Infosys is engaged in both software development and information technology-enabled service (ITES) within the same premises, and it is appropriate to adopt a higher tariff which is the norm, wrote Justice GK Ilanthiraiyan.
Senior counsel P Wilson submitted that Infosys, which operates the ITES business, has commercial activities with trade names like food courts, gymnasiums, employee shopping outlets, banks, ATM centres, etc.
Since the Tamil Nadu Electricity Regulatory Commission has classified this as a commercial activity, no concession can be given, the counsel added.
In July 2012, Tangedco issued a notice to Infosys at Mahindra World City, Chengalpattu stating there was a short assessment of the current consumption bill as it was made under industrial tariff despite commercial services. Further, Tangedco reassessed the current bill under commercial tariff and since Infosys indulged in various commercial services sought Rs 6.73 crore as a shortfall.
Infosys submitted that it was engaged only in software development and industrial tariff was applied correctly. After eight years, in 2020, Tangedco sent show cause notices to Infosys, demanding to pay the difference amount with high tension bill. Aggrieved by this, Infosys filed the petition seeking to quash the order demanding a high-tension commercial tariff.