The Himachal Pradesh government is facing legal consequences after the Himachal Pradesh High Court ordered the seizure of Himachal Bhawan in New Delhi for failing to repay Rs 64 crore to Seli Hydro. The court’s decision comes after the state failed to return the advance premium paid by the company for a 320 MW hydropower project in Lahaul Spiti, allotted in 2009.

Stating that the state government is challenging the High Court order and will review it before deciding on further action, Chief Minister Sukhvinder Singh Sukhu clarified that the premium of Rs 64 crore paid by a hydropower company has been withdrawn under the Hydropower Policy 2006 .

Justice Ajay Mohan Goel ordered the government to return Rs 64 crore along with seven percent interest from the date the petition was filed by the power company. The court also directed the Secretary of State (Power) to investigate and identify the officials responsible for the delay in returning the money. In a stern directive, the court held that the interest amount could be recovered personally from the officials responsible for the default. The case is scheduled for the next hearing on December 6, 2024.

The controversy stemmed from the 2009 agreement, when the state allocated the Hydel Seli Hydro project and undertook to provide essential infrastructure, including road construction by the Border Road Organization. However, by 2017, the company filed a petition, citing the government’s failure to deliver the necessary infrastructure, thus seeking the return of the advance payment. The government terminated the agreement in 2017 citing the company’s failure to sign the implementation agreement and also filed a special leave application against the court order.

Former Chief Minister Jai Ram Thakur called it a reflection of the government’s failure. He criticized the appointment of 70 lawyers for the defense of the state, accusing them of not protecting the interests of the Government. Thakur warned that other attachments, including the legislative assembly and the state secretariat, could come up if the government’s inefficiency continued.