North News
Shimla, November 14
Commenting on the controversy surrounding the attachment of Himachal Bhawan over unpaid dues, Himachal Pradesh Chief Minister Sukhvinder Singh Sukhu on Tuesday said, “I have yet to read the order. We will examine the High Court order and take a decision.” The Chief Minister clarified that under the Hydro Power Policy of 2006, a clause permits the forfeiture of the upfront premium deposited by the power company. He confirmed that Rs 64 crore from a hydro power company had been forfeited, with the return of the amount to be decided by an arbitrator. Sukhu also said that the state government had moved the court to challenge the ruling.
The Himachal Pradesh High Court has attached Himachal Bhawan, located in Delhi’s Mandi House, after the Congress-led state government failed to pay electricity dues amounting to nearly ₹150 crore.
The court has now authorized the company to auction Himachal Bhawan to recover the amount. Additionally, it directed the Principal Secretary of the Power Department to investigate the lapses and identify officials responsible for the financial mishandling, according to media reports.
The High Court had repeatedly warned the government about severe consequences if it failed to comply with repayment orders. With this development, the court has reinforced accountability in utilizing state treasury funds. The dues stem from a long-pending arbitration case linked to the 400 MW Seli Hydro Power Project on the Chenab River in Lahaul-Spiti. The project, awarded to Moser Baer, involved an upfront payment of ₹64 crore. When the project failed, arbitration ruled in favor of the company, ordering the state to refund the amount with 7% interest. The court upheld this ruling on January 13, 2023, but the government did not comply, allowing the dues to accumulate to ₹150 crore.
