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HC Orders attachment of Himachal Bhawan over ₹150 Crore dues

Himachalscape bureau November 19, 2024 2 minutes read

Shimla, Nov 19,

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The Himachal Pradesh High Court has ordered the attachment of Himachal Bhawan in Delhi to recover ₹150 crore owed to Seli Hydro Electric Power Company by the state government, dealing a significant blow to the Sukhvinder Singh Sukhu administration.
Justice Ajay Mohan Goel’s order on Monday allows the company to auction the property to recover its dues. The court has also directed the Principal Secretary of Electricity to conduct a fact-finding inquiry within 15 days to identify officials responsible for the non-payment of the court-ordered refund. The court emphasized that the interest accrued due to the delay should be recovered from these officials.
The court expressed displeasure over the government’s inaction, stating that the delay unnecessarily increased public financial liability. Justice Goel directed the Principal Secretary of Electricity to identify the negligent officials and hold them accountable for the financial burden.
The court clarified that the auction process of Himachal Bhawan should commence immediately to enable the company to recover its dues. This unprecedented move reflects the seriousness of the government’s non-compliance.
The case stems from a 400 MW Seli Hydro Power Project proposed on the Chenab River in Lahaul-Spiti. Moser Baer, the project’s awardee, deposited ₹64 crore as upfront money. However, the project’s failure led to arbitration, where the arbitrator ruled in favor of the company, directing the government to refund the upfront money with 7% interest.
On January 13, 2023, the High Court upheld the arbitration decision and directed the state government to deposit ₹64 crore, along with interest, in the court registry. The government’s failure to comply led to further complications.
A division bench later granted a stay on the arbitration order, conditioned upon the government depositing the due amount. Despite several extensions, the government’s non-compliance led to the removal of the stay on July 15, 2024.
With the accumulated interest, the amount due has now escalated to ₹150 crore. The High Court noted that the delay not only caused financial loss but also increased the burden on the state treasury.
The state government now faces not only financial loss but also a potential political backlash, as public assets like Himachal Bhawan are dragged into legal disputes. The next court hearing on December 6 will determine further actions and responsibilities in this high-profile case.

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The HimachalScape Bureau comprises seasoned journalists from Himachal Pradesh with over 25 years of experience in leading media conglomerates such as The Times of India and United News of India. Known for their in-depth regional insights, the team brings credible, research-driven, and balanced reportage on Himachal’s socio-political and developmental landscape.

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