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Shimla, April 4- Himachal Pradesh Govt Dealt Another Blow: Court Orders Refund of Rs. 34.48 Crore in Hydro Power Project Case

Himachal Pradesh Ordered to Refund Rs. 34.48 Crore to Hydro Power Project Company in Arbitration Case

The Himachal Pradesh High Court has ordered the state government to pay a refund of Rs. 34.48 crores to a company that set up the Chanju-1 Hydro Power Project in Chamba. The ruling comes as another blow to the state government, which has been facing several arbitration cases in courts, with some already decided against it.

Also read: HP HC reserves verdict on Adani power plea to release Rs 280 Cr upfront deposit 

In the Chanju-1 Hydro Power Project case, the arbitrator, former Chief Justice of the State High Court and former Judge of the Supreme Court Kurian Joseph, found in favour of the project proponent, who alleged that the construction had to be stopped due to protests by local people, leading to delays and financial losses for the company. The proponent sought a refund as compensation.

The counsel for the company argued before the arbitration that the local people opposed the allotment of land for the project’s construction, which led to the delay and financial loss.

The High Court has now ordered the government to pay the amount and six percent interest within four months. The decision has brought to light the issue of delays caused by protests and opposition from local people during project implementation.

Earlier this year, the High Court directed the government to return the upfront money of Rs. 280 crores along with interest to Adani Power in a similar case.

As more cases remain pending in arbitration and courts, the government must take a closer look at its policies and practices to prevent similar issues from arising in the future. This latest arbitration ruling has highlighted the need for a more robust system that considers local people’s concerns and ensures that all parties involved are treated fairly and justly.


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