The Himachal Pradesh High Court has ordered the attachment of Himachal Bhawan in Delhi to recover Rs 150 crore owed to Seli Hydropower Electric Company. This decision follows a legal dispute over the abandoned 340 MW Seli Hydropower Project. The move highlights significant governance issues amid criticism from the BJP and raises concerns about the state’s financial management and public-private partnerships.
Himachal Pradesh: The Himachal Pradesh High Court’s decision to order the attachment of Himachal Bhawan in Delhi has sparked widespread attention, not just for its financial implications but also for the governance challenges it exposes. The attachment, aimed at recovering Rs 150 crore owed by the Himachal Pradesh government to the Seli Hydropower Electrical Company, is a significant move in an ongoing legal tussle over a long-abandoned hydropower project.
The 340 MW Seli Project: A Timeline of Disputes
The controversy dates back to 2009, when the state government awarded the 340 MW Seli Hydropower Project on the Chenab river in Lahaul and Spiti district to Seli Hydropower Electric Company Limited, part of Moser Baer. Following the Letter of Allotment (LOA) on February 28, 2009, the company deposited an upfront premium of Rs 64 crore, as per policy requirements.
However, the project faced delays due to unmet infrastructure commitments. The company argued that the state government failed to provide the necessary basic facilities, rendering the project both technically and financially unviable. In 2017, the firm returned the project to the government, which subsequently forfeited the upfront premium, sparking the legal battle.
Court Orders and Mounting Debt
After the project was stalled, the dispute went to arbitration, where the arbitrator ruled in favor of the company, ordering the return of the upfront premium with interest. The state government, however, did not comply. This led to the company filing a writ petition in the High Court under Article 226.
The High Court found merit in the company’s claims and, in a judgment dated January 13, 2023, upheld the arbitrator’s decision. The court directed the state government to deposit the Rs 64 crore upfront premium with interest. With 7% annual interest accumulating since the petition’s filing, the amount has now ballooned to Rs 150 crore.
On Monday, Justice Ajay Mohan Goel took the unprecedented step of ordering the attachment of Himachal Bhawan in Delhi, located in the prime Mandi House area. The court has allowed the company to take further steps for the auction of the property to recover the dues.
Fact-Finding Probe Ordered
In an effort to hold those responsible accountable, the High Court directed the Principal Secretary (Power) to initiate a fact-finding inquiry. The inquiry aims to identify the officers whose actions or inactions led to this financial and legal crisis. The court mandated that the findings be submitted within 15 days, ahead of the next hearing scheduled for December 6.
Political Fallout and Responses
The case has caused significant embarrassment for the Congress-led Himachal Pradesh government. Chief Minister Sukhvinder Singh Sukhu, while acknowledging the issue, stated,
“The upfront premium is based on a policy under which, when the energy policy was made in 2006, I was the main architect.”
He clarified that the government had contested the arbitration decision but refrained from elaborating on why the dues remained unpaid.
BJP’s Sharp Criticism
The opposition Bharatiya Janata Party (BJP) has seized the opportunity to criticize the Congress government. Shehzad Poonawala, BJP’s national spokesperson, lambasted the state government for its financial mismanagement. He remarked,
“They are busy investigating samosas, and the situation is such that the Himachal Bhawan is now on the verge of being sold to pay the dues of power companies.”
Poonawala also highlighted the government’s inability to pay employee salaries and criticized the imposition of what he termed a “toilet tax”. BJP leader CR Kesavan added that Rahul Gandhi’s economic ideas have resulted in a “disastrous domino effect” on Himachal Pradesh’s economy, leading to the current crisis.
The Bigger Picture
The attachment of Himachal Bhawan underscores deeper issues within the state’s administration and financial management. While the immediate concern revolves around the Rs 150 crore owed to the Seli Hydropower Company, the larger picture reflects a governance system under strain. The controversy also puts a spotlight on the effectiveness of public-private partnerships in the infrastructure sector, particularly when state support is lacking.
Economic and Political Implications
This development comes at a time when Himachal Pradesh is grappling with significant economic challenges. The government’s inability to fulfill its commitments to infrastructure projects like the Seli Hydropower Electric Project sends a concerning signal to potential investors. The delay in settling dues could also deter future partnerships and tarnish the state’s reputation as a reliable partner for private enterprises.
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Politically, the issue has added to the Congress government’s woes, giving the opposition fresh ammunition to attack its policies and governance. The BJP’s sharp critique reflects an effort to capitalize on the crisis, further heating the political climate in the state.
What Lies Ahead?
The next steps include the government’s appeal against the High Court order and the fact-finding inquiry into the officers responsible for the lapses. However, with the High Court maintaining its firm stance, the outcome of these proceedings could have far-reaching implications for the state’s governance and its financial future.
The December 6 hearing will likely provide more clarity on whether Himachal Bhawan will indeed be auctioned or if the government can find a resolution to this escalating crisis.
Conclusion
The attachment of Himachal Bhawan in Delhi is not just about recovering Rs 150 crore but serves as a stark reminder of the consequences of administrative inefficiencies and missed commitments. As Justice Ajay Mohan Goel’s order resonates across legal, political, and economic circles, it also sends a message about accountability and the critical need for governments to honor their commitments in public-private projects. Himachal Bhawan’s fate now hangs in the balance, a symbol of governance under scrutiny.
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