Legal Blow: Orient Green Power Faces ₹65M Liability Following Delhi HC Ruling

On November 28, 2025, Orient Green Power Company Ltd (OGPL) announced that the Delhi High Court has dismissed its appeal and upheld an arbitral award in a long-standing dispute with S M Milkose Ltd. The litigation, which dates back to an MoU signed in 2008 related to biomass power projects, has now resulted in a financial liability estimated at ₹65 million (₹6.5 crore).

Key Highlights

Court Ruling: The Delhi High Court upheld the arbitral award originally pronounced on August 1, 2016, unfavorable to OGPL.

Financial Impact: OGPL had already recognized a provision of ₹3.33 crore in its books. Following the ruling, it must now record an additional ₹3.17 crore in the current quarter.

Dispute Background: The case stems from contractual disagreements with S M Milkose Ltd over biomass power project execution.

Investor Implications: The ruling may affect OGPL’s short-term financial outlook, though the company remains active in India’s renewable energy sector.

Industry Context: Legal challenges highlight the risks renewable energy firms face in project partnerships and contractual obligations.

This judgment underscores the importance of legal compliance and financial prudence for renewable energy companies navigating complex project agreements.

Sources: FilingReader, ScanX News, JusMundi