Himachal Pradesh’s government is facing legal consequences after the Himachal Pradesh High Court ordered the attachment of Himachal Bhawan in New Delhi for failing to repay Rs 64 crore to Seli Hydro company. The court's decision comes after the state failed to return the upfront premium paid by the company for a 320 MW hydropower project in Lahaul Spiti, allocated in 2009.
Stating that the state government is challenging the High Court’s order and will review it before deciding on further action, Chief Minister Sukhvinder Singh Sukhu clarified that Rs 64 crore upfront premium paid by a hydro power company was forfeited under the 2006 Hydro Power Policy.
Justice Ajay Mohan Goel directed the government to return Rs 64 crore along with seven percent interest from the date the petition was filed by the power company. The court also instructed the state’s Secretary (Power) to investigate and identify the officials responsible for the delay in returning the money. In a stern directive, the court noted that the interest amount could be recovered personally from the officials responsible for the non-payment. The case is scheduled for next hearing on December 6, 2024.
The controversy stemmed from the 2009 agreement when the state allotted hydel project to Seli Hydro and committed to providing essential infrastructure, including road construction by the Border Road Organization. However, by 2017, the company filed a petition, citing the government’s failure to deliver the required infrastructure, thus seeking the return of the upfront payment. The Government had terminated the agreement in 2017, citing the company’s failure to sign the implementation agreement, and also filed a special leave petition against the court’s order.
Former Chief Minister Jai Ram Thakur called it a reflection of government's failure. He criticized appointment of 70 lawyers to defend the state, accusing them of failing to protect Government’s interests. Thakur warned that further attachments, including the state’s legislative assembly and secretariat, might occur if the government’s inefficiency continued.
