CHITTOOR ZILLA VYAVASAYADARULA SANGHAM vs A.P.STATE ELECTRICITY BOARD

The Supreme Court addressed the legality of the Andhra Pradesh Electricity Board's decision to revise electricity tariffs for the agricultural sector, which contradicted the State's policy of providing subsidized rates under Section 59 of the Electricity (Supply) Act, 1948. The Court held that the Board's actions were not arbitrary or discriminatory, affirming the High Court's dismissal of the writ petitions. The ruling established that the Board has the authority to fix tariffs based on motor capacity, provided there is a rational basis for such differentiation.