The Supreme Court has clarified the creation of Regulatory Assets for Tata Power Delhi Distribution Limited (TPDDL), a joint venture. The Court ruled that such assets should only be created under exceptional circumstances, not routinely. Critically, TPDDL's outstanding Regulatory Assets are now mandated to be liquidated within a maximum of four years, starting April 1, 2024, with expected completion by March 2028. This judgment provides a clear, time-bound recovery path for these assets, positively impacting TPDDL's financial position and ensuring shareholder value.