The Gujarat high court has ordered Indian Institute of Management, Ahmedabad to pay up Rs 46.14 lakh (Rs 4.61 million) of electricity duty to the state government.
A division bench of chief justice K S Radhakrishnan and Justice Akhil Qureshi, while delivering the judgement last week directed the IIM-A to pay up electricity duty at non-concessional rates for period from 1993 to 1995 instead of concessional rates as it could not satisfy the criteria of being an 'educational institute'.
IIM-A could not satisfy the criteria of being an 'educational institute' under the Bombay Electricity Act 1958 because of non-affiliation with Gujarat University and thus was not entitled for concessional rate of 40 per cent of consumption charges, the court observed.
The court also observed that the institute had been paying electricity duty at non-concessional rate of 60 per cent of consumption charges since 1996.
In 1999, the Bombay Electricity Duty Act, 1958 was amended and IIM-A was once again treated as an educational institute and eligible for electricity at concessional rate.
The judgement in the case came after 13 years.
IIM-A, for the period between February 1983 to 1992 was affiliated with Gujarat University and charged electricity duty at concessional rate as it was defined as 'Educational Institute' under the Bombay Electricity Act 1958.
But after IIM-A severed relationship with Gujarat University in December 1992, it was asked to pay electricity duty at rate of 60 per cent of consumption charges as it was no longer could be categorised as 'Educational Institute'.