16 Apr 2026
Trilegal successfully represented Hydropower Generators/ Distribution Licensees in a Landmark Uttarakhand High Court Ruling on Water Tax
28 Apr 2026
28 Apr 2026
Trilegal successfully advised and represented hydropower generators and electricity distribution licensees in a significant legal challenge to the imposition of a tax on water drawn by hydropower plants for the generation of electricity in the State of Uttarakhand.
The Trilegal team provided comprehensive legal support at the pre-litigation stage, including strategic advisory, drafting of pleadings, and representation before the Uttarakhand High Court. The matter concerned the constitutional validity of a state levy on water utilised by hydropower projects—an issue that had remained unresolved for decades.
In a rare development, the case witnessed a split verdict at the Division Bench level following an earlier decision of a Single Judge, necessitating reference to a third judge. The final opinion rendered by the third judge conclusively struck down the impugned levy, holding that the State legislature lacked the authority to impose such a tax on water used for hydropower generation.
The judgment brings long-awaited clarity on the legislative competence of states in relation to taxation of water drawn for hydropower generation and results in substantial financial relief for Trilegal’s clients, with estimated savings in the range of INR 6,000–8,000 crore.
This landmark ruling is expected to have far-reaching implications for the hydropower sector across the country, reaffirming constitutional boundaries while providing certainty to infrastructure and energy stakeholders.
The Trilegal Dispute Resolution team advising on the matter was led by Partners: Shankh Sengupta and Abhishek Kumar; supported by Senior Associates: Nived Veerapaneni and Karan Arora; and Associate: Shubham Mudgil.
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 157 partners operating under a distinctive lockstep model, Trilegal is the largest equity partnership in the country. The firm retains over 1,300 professionals across its Mumbai, Delhi, Gurugram, Bengaluru, Chennai, Pune, and GIFT City 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.
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