In an embarrassment for the Himachal Pradesh government, the Himachal Pradesh High Court has attached the Himachal Bhawan in Delhi to recover the state government dues of Rs 150 crore to a private power firm. Chief Minister Sukhvinder Singh Sukhu said he is yet to see the full order and they will challenge it legally.
On Monday, hearing a petition by Seli Hydropower Electrical Company, a private firm involved in the hydropower electric project on the Chenab river in Lahaul and Spiti district, the High Court ordered the attachment of Himachal Bhawan to recover the dues. Pronouncing the verdict, a single-judge bench of Justice Ajay Mohan Goel said the company may take appropriate steps for the auction of Himachal Bhawan located in central Delhi.
The case pertains to the 340 MW Seli hydropower electric project on the Chenab river in Lahaul and Spiti district. The state government awarded the project to Seli Hydro Electric Power Company Limited / Moser Baer and issued the Letter of Allotment (LOA) on February 28, 2009 following which the firm deposited the upfront premium of Rs 64 crore. However, the project did not materialise. The state government cancelled the LOA and ordered forfeiture of the upfront premium.
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The private firm challenged the decision before an arbitrator and it ruled in the favour of Seli. The arbitrator ordered the government to deposit the upfront premium with interest. After the state government failed to comply with the order, the company moved the High Court under Article 226.
The High Court observed there was merit in the petitioner's contention that the project had become technically and financially unviable and its prayer for withdrawing from it deserved to be allowed, PTI reported. The HC also upheld the decision of the arbitrator and directed the government to deposit the upfront premium with interest with the Registry. Due to the delay in payment, the amount has accumulated to Rs 150 crore including interest.
The High Court also directed the state power secretary to conduct a fact-finding inquiry to identify the officers responsible for the lapse and sought its report within 15 days, before the next hearing on December 6.