Trilegal advised NSEFI and DISPA in landmark Bombay High Court win restoring 17hrs banking for RE Developers

Successfully represented National Solar Energy Federation of India (NSEFI) and Distributed Solar Power Association (DISPA) and various RE Developers before the Hon’ble Bombay High Court in a batch of Writ Petitions challenging the Review Order dated 25.06.2025 issued by the Maharashtra Electricity Regulatory Commission (MERC). Trilegal secured vital relief for the RE Developers by Banking of renewable energy being restored to 17 Hours in a day.

Matter Overview| Trilegal successfully represented the National Solar Energy Federation of India (NSEFI) and the Distributed Solar Power Association (DSPA) before the Hon’ble Bombay High Court in a batch of writ petitions filed against the Maharashtra Electricity Regulatory Commission (Ld. MERC) and Maharashtra State Electricity Distribution Company Limited (MSEDCL). The challenge was directed against Ld. MERC’s Review Order dated 25.06.2025, which sought to drastically amend the solar banking framework introduced under the Tariff Order dated 28.03.2025. In particular, Ld. MERC’s Review Order confined the drawal of banked solar energy to ‘solar hours’ (0900 to 1700 hrs) only — rendering banking facility in the State of Maharashtra completely redundant. Further, Ld. MERC failed to grant an opportunity of hearing to affected stakeholders, including RE developers who had participated in the original proceedings, violating core principles of natural justice.

Vide Judgement dated 03.11.2025, the Bombay High Court allowed the Batch of Writ Petitions, set aside the Review Order, and remanded the matter to Ld. MERC directing that the Review Petition filed by MSEDCL be decided afresh after providing full stakeholder participation.

By striking down Ld. MERC’s attempt to modify RE banking, without issuing public notice or hearing stakeholders, the High Court reaffirmed that any amendment to tariff determined through public process must follow the same public consultative mechanism and that inherent powers of a Commission cannot be invoked to bypass the Electricity Act, 2003 or the extant MERC Regulations.

The matter was argued by various Senior Advocates and Mr. Vishrov Mukerjee.

Matter Significance| This matter sits at the intersection of clean energy transition, regulatory certainty, and constitutional due process. Ld. MERC’s sudden reversal of its own banking regime, without affording notice or hearing to affected stakeholders, triggered far-reaching consequences for existing and under-construction renewable energy projects in Maharashtra. RE developers had planned, financed, and contracted long-term supply on the basis of the previous banking framework. The revised framework threatened termination risk, penalties, and stranding of transmission capacity.Further, the restriction jeopardised the captive status of renewable energy-based Captive Generating Plants (CGPs), triggering potential levy of cross-subsidy and additional surcharges.

Trilegal spearheaded the entire litigation before the Bombay High Courtand its successful representation not only safeguarded the settled banking rights but also reinforced judicial scrutiny over arbitrary regulatory action.

The ruling safeguards renewable developers relying on the banking framework for operational flexibility and captive structuring. It averts unintended tariff shocks and mitigates risks of contract termination, open-access disruption, loss of captive eligibility, and investment distress.

The case has attracted national attention, with implications for energy regulators across India contemplating similar banking rollbacks. The matter also highlighted a growing concern around overreach by regulatory commissions and the need for transparent and consultative governance in the energy sector.

The Trilegal Dispute Resolution Team advising on the matter was led by Partner: Vishrov Mukerjee; and supported by Counsels: Pratyush Singh and Hridhay Khurana; Senior Associate: Damodar Solanki; and Associates: Garima Adlakha and Arnav Bhansali

About Trilegal

Trilegal is a leading full-service law firm in India with over 25 years of experience, trusted for its in-depth expertise and client-centric approach. The firm advises a diverse set of clients, including Fortune 500 companies, global investment funds, major Indian conglomerates, domestic and international banks, technology and media giants, family offices, and high-net-worth individuals. With 149 partners operating under a distinctive lockstep model, Trilegal is the largest equity partnership in the country. The firm retains over 1,200 professionals across Mumbai, Delhi, Bengaluru, and Gurugram offices.

Trilegal has consistently been recognised among India’s top-tier firms in leading legal directories such as Chambers & Partners (Asia Pacific and Global), Legal 500 Asia Pacific, and Benchmark Litigation. It has also earned several prestigious accolades, including being named Best Overall Law Firm by India Business Law Journal (IBLJ) 2025, Innovative Lawyers in Disputes & Crisis Management by the Financial Times (FT) Innovative Lawyers Asia-Pacific Awards in 2025, M&A Firm of the Year by IFLR Asia-Pacific in 2024, Law Firm of the Year by Deal Volume at the VCCircle Awards in 2024.

For more information, please get in touch with Prakruti Jani | Mob: +91-9867868976 | BD@trilegal.com

Please find enclosed the order for your kind perusal.

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