The Himachal Pradesh High Court has ordered the attachment of Himachal Bhawan, located in Delhi's Mandi House area, to recover Rs 150 crore owed by the state government to Seli Hydropower Electrical Company. The amount stems from an arbitration ruling in favor of the power firm.
Passing the order on Monday, Justice Ajay Mohan Goel directed the company to take appropriate steps for the auction of Himachal Bhawan. The court also instructed the Principal Secretary (Power) to initiate a fact-finding inquiry to identify the officials responsible for the lapse and submit a report by December 6.
The case pertains to the 340 MW Seli Hydropower Electric Project on the Chenab River in Lahaul and Spiti district. The project was awarded to Seli Hydropower Electric Power Company Limited/Moser Baer in 2009, and the firm deposited an upfront premium of Rs 64 crore. However, the project failed to materialise, leading the state government to cancel the Letter of Allotment (LOA) and forfeit the premium.
The company challenged the decision before an arbitrator, who ruled in its favor, directing the government to refund the upfront premium with interest. The high court upheld the arbitrator's decision on January 13, 2023, and ordered the government to deposit the amount with interest.
Due to non-compliance, the amount has now ballooned to Rs 150 crore with the accumulation of 7% interest. After further delays, the power firm moved the court under Article 226, resulting in the attachment order.
Advocate General Anup Rattan confirmed that the state government has appealed against the high court’s earlier order, with the matter expected to come up for hearing later this month.
The BJP targeted the Congress government, blaming it for the debacle. Leader of Opposition Jairam Thakur said, “The state government is unable to defend itself, and our prestigious properties like Himachal Bhawan located in Mandi House in Delhi are being attached, which is a clear failure of the government. This has happened for the first time in the history of Himachal. Himachal is on the verge of getting auctioned under the Congress rule.”
Chief Minister Sukhvinder Singh Sukhu dismissed the criticism, stating, “Depositing Rs 64 crore is not a big thing for the state government, but we are fighting a legal battle.”