Himachal HC Orders Attachment Of Himachal Bhawan Over Unpaid Dues

Himachal Bhawan

The Himachal Pradesh High Court on Tuesday ordered the attachment of Himachal Bhawan in Delhi to recover Rs.150 crore owed by the state government to Seli Hydropower Electrical Company.

The order was passed by a single-judge bench of Justice Ajay Mohan Goel on Monday, allowing the company to take steps for the auction of the Himachal Bhawan located in Mandi House, central Delhi.

The case involves 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) on February 28, 2009, with the firm depositing an upfront premium of Rs 64 crore.

However, the project failed to materialize, leading the state government to cancel the Letter of Allotment (LOA) and forfeit the deposited premium.

Seli Hydro Electric Power Company challenged the forfeiture decision before an arbitrator, who ruled in favor of the company and ordered the government to refund the upfront premium with interest.

When the government failed to comply, the company filed a petition in the High Court under Article 226.

The High Court upheld the arbitrator’s decision on January 13, 2023, directing the state government to deposit the upfront premium along with accumulated interest with the Registry. Due to the government’s delay in payment, the amount has grown to Rs 150 crore, with 7% interest accruing since the petition was filed.

In a setback for the state government, the court ordered the attachment of Himachal Bhawan and instructed the principal secretary of the Power Department to conduct a fact-finding inquiry to determine the officers responsible for the delay.

The inquiry report is expected by December 6, ahead of the next hearing.

In response, Advocate General Anup Rattan stated that the Himachal Pradesh government has already filed an appeal against the High Court’s order, which is expected to be heard later this month.