J&K High Court Declares Water Usage Charges Under 2010 Act 'Ultra Vires'

The Jammu and Kashmir High Court on Thursday (October 29, 2026) struck down the imposition of water usage charges under the J&K Water Resources (Regulation and Management) Act, 2010, declaring it "ultra vires the Constitution." A Division Bench comprising Justice Sanjay Dhar and Justice Rajnesh Oswal ruled on petitions filed by 11 companies operating independent hydro power projects in the region.

According to the reported judgment, the court quashed the demand notices issued against the writ petitioners and restrained the State from imposing any tax on electricity generation under the guise of water usage charges.

Court Rulings and Arguments

• Constitutional Competence: The Division Bench observed that levying water usage charges on hydro power projects amounts to a tax on electricity generation, which the State Legislature lacks the competence to enact.
• Petitioners' Contentions: The 11 companies argued that water usage by hydro power plants is non-consumptive and that the charges were unlawfully fixed based on head height rather than the quantum of water used. They also cited an assurance of no additional charges beyond a 12% free electricity royalty.
• Government Defense: The J&K administration defended the 2010 Act, arguing it aligns with the National Water Policy and constitutional entries related to water, land, and minerals under the Seventh Schedule.

Readers can verify the official ruling by checking the J&K High Court's judgments portal or official legal gazettes for case documentation.