Mumbai, May 18 -- The Tata Power Company has issued a final ultimatum to the Brihanmumbai Electric Supply and Transport Undertaking (BEST) to pay dues worth Rs561.58 crore by May 21 or face the risk of no power supply from the same day.

In a notice dated May 14 (a copy of which is with HT), Tata Power has stated that BEST has failed to release payments from December 2018 to April 2019 despite two reminders from Tata Power on April 22 and May 8 this year. The delay in payments has "put severe stress on financial resources of Tata Power" the letter states.

It further states, "Tata Power shall be at the liberty to divert power equivalent to the capacity committed to BEST Undertaking as per provisions of the PPA to any third party from May 21...