J&K High Court strikes down water usage charges as unconstitutional

The Jammu and Kashmir High Court has declared the water usage charges imposed under the J&K Water Resources (Regulation and Management) Act, 2010, to be 'ultra vires'—exceeding the legal powers of the administration. The ruling represents a significant setback for the territorial government's attempts to monetize water resources.

The 2010 Act was enacted with the stated objective of generating revenue from water resources by levying charges on both private and public entities. Power-generating companies operating in the union territory were among the primary targets of the revenue collection scheme, which sought to create a new stream of income for the administration.

The High Court's determination that the imposition of these charges is ultra vires suggests the court found the revenue measure to be beyond the statutory authority granted under the 2010 Act or in violation of constitutional provisions governing taxation and resource management in the union territory.

The judgment is expected to have implications for the J&K administration's fiscal strategy and its approach to water resource management. The decision may prompt the government to reassess its framework for water resource monetization or seek legislative modifications to align future policies with constitutional requirements.