APHC010372772026 IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI (Special Original Jurisdiction) WEDNESDAY, THE 22nd DAY OF JULY 2026 PRESENT THE HONOURABLE SRI JUSTICE VENKATESWARLU NIMMAGADDA WRIT PETITION NO: 19965 OF 2026 Between: 1. M/s. Dr. Reddys Laboratories Limited, Having its manufacturing unit at Formulations Technical Operations (FTO-VII), Plot No. P1 to P9, Phase III, Duvvada, VSEZ, Visakhapatnam - 530 046, Andhra Pradesh, With Service Connection No. VSP-486 Represented by its Authorised Signatory Mr. Gopala Krishna Gangavelli ...Petitioner AND 1. THE STATE OF ANDHRA PRADESH, Rep. by its Principal Secretary, Energy Department, Secretariat, Velagapudi, Amaravathi, Guntur District - 522 238. 2. Eastern Power Distribution Company of Andhra Pradesh Limited APEPDCL, Rep. by its Chairman and Managing Director, Corporate Office, P and T Colony, Seethammadhara, Visakhapatnam - 530 013. 3. The Superintending Engineer, Operation Circle, APEPDCL, Visakhapatnam - 530 013. 4. The Assistant Divisional Engineer, Operation, Autonagar Sub-Division, APEPDCL, Visakhapatnam - 530 013. 5. The Executive Engineer, Operation Division (Zone-ll), APEPDCL Visakhapatnam - 530 013. 2 6. The Senior Accounts Officer, Operation Circle, APEPDCL, Visakhapatnam - 530 013. 7. The Deputy Executive Engineer, , Operation, Autonagar Sub-Division, APEPDCL, Visakhapatnam - 530 013. ...Respondents Counsel for the Petitioner: CKR ASSOCIATES Counsel for the Respondents: GP FOR ENERGY 3 The Court made the following oral order: Heard learned counsels for the writ petitioner and learned Standing Counsel for the APEPDCL. 2. This Writ Petition is filed claiming the following relief: “It is therefore prayed that this Hon’ble Court may be pleased to issue an appropriate Writ, order or direction, more particularly one in the nature of a Writ of Mandamus declaring (a) the Assessment Notice for Short Billing vide Case No.HT/DE/DPEA/SP/ 074151/ 2026 dated 14.05.2026, issued by the Respondent No.4 as illegal, arbitrary, without jurisdiction and contrary to the Electricity Act, 2003 and Final Order dated 18.06.2024 in W.P. No. 20857 of 2023 on the file of the Honble High Court of Andhra Pradesh, besides violative of Petitioners fundamental rights guaranteed under Article 14, 19(1)g of Constitution of India and consequently quash the same (b) further action of the Respondents in affixing seals upon the Petitioners roof-top solar power plant, and in insisting upon synchronization/regularization of the Petitioners captive, island mode plant with the APEPDCLs grid as illegal, arbitrary and without jurisdiction besides violative of Petitioners fundamental rights guaranteed under Article 14, 19(1)g of Constitution of India and consequently direct the Respondents to forthwith remove the seals affixed upon the Petitioners solar power plant and to restrain from insisting upon any such synchronization/regularization with APEPDCLs Grid and consequently direct the Respondents to forthwith remove the seals affixed upon the Petitioners solar power plant and to restrain from insisting upon any such synchronization/ regularization with APEPDCLs Grid, and/or pass such order or orders as this Hon’ble Court may deem fit and proper in the facts and circumstances of the same, in the interest of justice.” 3. Learned counsel for the writ petitioner submits that petitioner is a Company incorporated under the provisions of the Companies Act, 1956 and the petitioner is a Pharmaceutical company and has the manufacturing unit, which requires continuous and uninterrupted electricity supply for its operations, and the Petitioner has accordingly entered into an HT agreement with APEPDCL bearing Service Connection No.VSP-486, under HT Category IIIA (Industry-General), with a Contracted Maximum Demand of 8000/KVA/HP, subject to the terms and conditions contemplated therein, in 4 accordance with law. The Petitioner herein to secure an additional, reliable and continuous layer of power for such a critical, uninterrupted manufacturing process and to reduce its energy costs, the petitioner has installed a captive roof-top solar power plant of an aggregate capacity of 697.935 KW (DC) [0.697935 MW] on the rooftops of FTO-7 (228.735 kWp) and FTO-9 (469.2 kWp) within the very same premises of Service Connection No. VSP-486 and the solar generation out of it being utilized exclusively to meet a part of the petitioner’s own internal captive load, correspondingly reducing the petitioner’s drawal from, and consumption billed by, the Respondent DISCOM. The petitioner had duly obtained the statutory approval from the Director of Electrical Safety and Chief Electrical Inspector to Government of Andhra Pradesh (CEIG) under Section 54 of the Electricity Act, 2003 read with Regulation 43 (4) of the Central Electricity Authority (Measures relating to Safety and Electric Supply) Regulations, 2010. The said CEIG approval is the only sufficient statutory clearance as contemplated by law for the installation and energisation of a captive solar power plant, and the same has been obtained by this petitioner without any deviation whatsoever. 4. Learned counsel for the petitioner further submits that while things stood thus, on 21.10.2025, during a periodical inspection of the petitoner’s premises by the MRT wing of APEPDCL, it was observed that solar panels were installed and being utilized at the premises, and the respondent no.5 accordingly issued a notice dated 22.11.2025 directing the petitioner to arrange for solar Synchronization process within 15 days, failing which, necessary action would be initiated as per the department rules. He further submits that on 24.01.2026, a reminder notice was also issued by the respondents reiterating the very same demand for solar synchronization process. For the above said notices, the petitioner has issued reply dated 15.04.2026. On 28.01.2026 the respondents again inspected the premises of the petitioner and issued notice on 01.02.2026 acknowledging receipt of the vendor agreement, CEIG approval and roof-top generation year-wise break-up solar plant, while simultaneously directing the petitioner to furnish the solar 5 generator meter-data soft copy within two days from inspection. After inspection the Assistant Divisional Engineer, Operation, Visakhapatnam (Respondent No.4) has issued Assessment notice (Ex.P.8) for short billing dated 14.05.2026 alleging that upon inspection on 26.1.2025, it was found that the solar roof-top generation supply is connected at LT panel board at 415V in parallel with discom supply and that the Grid Supporting Charges (“GSC”) are not being collected, and that the petitioner has not obtained synchronization approval for the 697.935 KW (DC) [0.697935 MW] plant and on this premise, provisionally assessed Rs.7,66,474/- towards alleged Grid Supporting Charges @ Rs.25/- per KW per month from the period from 01.04.2022 to 26.11.2025 (for approximately 43 months) besides directing payment of Rs.1,000/- towards supervision charges plus GST. For the above Assessment order, the petitioner has submitted his reply on 29.06.2026 stating that the Grid Supporting Charges are apply only to renewable energy plants that are grid interactive and inject/draw power from the DISCOM’s grid, which is the same is not applicable to the petitioner herein and the CEIG approval obtained by the petitioner is sufficient and without having satisfaction on the above explanations, the respondents have affixed the seals on the roof-top solar power plant against the rules 5. During hearing, learned counsel for the petitioner would submit that, since the petitioner is utilizing the electricity supply for its own operations, the respondent/DISCOM has no authority over the said issue. Moreover, the first inspection was conducted in the year 2020 and the second inspection was conducted as latest in the year 2026. It is also submitted that, the respondents are making the petitioner liable to pay the grid supporting charges for the period from 01.04.2022 to 26.11.2025, which is illegal and arbitrary 6. Per contra, Sri V.V. Satish, learned Standing Counsel appearing for APEPDCL, submitted that the demand has been raised strictly in accordance with the applicable statutory provisions and the governing regulations. 6 7. Having regard to the submissions made by both the counsel, this Court deems it appropriate that the interests of justice would be adequately served by remanding the matter to Respondent No.2 for fresh consideration. Accordingly, Respondent No.2 shall consider the petitioner's objections, afford an opportunity of personal hearing, and pass a reasoned order in accordance with law, uninfluenced by any observations made in this order, if any. Till passing of orders, the respondents are directed to not to take any coercive steps against the petitioner. 8. Accordingly, this Writ Petition is disposed of. No order as to costs. 9. As a sequel, miscellaneous petitions pending, if any, shall stand closed. ______________________________________ JUSTICE VENKATESWARLU NIMMAGADDA Date: 22.07.2026 MNR 7 166 HONOURABLE SRI JUSTICE VENKATESWARLU NIMMAGADDA WRIT PETITION No.19965 OF 2026 Dt: 22.07.2026 Mnr