Shimla, Sept 2,
In a significant legal development, the Supreme Court of India has issued a notice to the Himachal Pradesh government, demanding its response to a petition filed by Adani Power Ltd. The company is seeking the refund of Rs 280 crore with 18% interest, a sum it had deposited in relation to the 960 MW Jangi Thopan Power Projects in Kinnaur district.
The project had initially been awarded to Brakel Corporation, a Dutch firm, which failed to meet the upfront premium requirements within the stipulated time, leading to a series of legal entanglements.
The bench, comprising Justices M M Sundresh and Arvind Kumar, declined to grant a stay on the Himachal Pradesh High Court’s order, which had overturned a previous decision by a single bench that directed the state government to refund the amount to Adani Power.
The division bench of the High Court had ruled that the financial arrangements between Adani Power and Brakel Corporation were in violation of the tender conditions and the state’s Hydro Power Policy, thereby nullifying any claim for compensation.
The origins of this dispute trace back to 2005 when the Himachal Pradesh government invited global bids for two hydropower projects—Jangi Thopan and Thopan Powari—each with a capacity of 480 MW. Brakel emerged as the highest bidder in 2006 but failed to deposit the upfront premium within the mandated timeframe. This prompted Reliance Infrastructure Ltd, the second-highest bidder, to offer to match Brakel’s bid. During this period, Adani Power, a consortium partner with Brakel, deposited Rs 280 crore as the upfront premium.
Reliance Infrastructure subsequently moved the Himachal Pradesh High Court, challenging the allotment of the projects to Brakel. In 2009, the High Court annulled the allotment, directing the state to invite fresh bids. The state government then sought damages amounting to Rs 2,700 crore from Brakel for the delay in implementing the projects.
Adani Power’s appeal to the Supreme Court contends that the division bench of the High Court erred in its judgment by failing to recognize the financial commitments and subsequent losses incurred by the company. The apex court, while refraining from granting a stay, has sought a detailed response from the Himachal Pradesh government, marking the next stage in this protracted legal battle.
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