“Supreme Court Seeks Himachal Pradesh Government’s Response on Adani Power’s Appeal Over Hydro Project Dispute”
Adani Power has approached the Supreme Court seeking a refund of ₹280 crore from the Himachal Pradesh government, challenging a July 18 ruling by the Himachal Pradesh High Court that went against the company.
A Bench of Justices MM Sundresh and Aravind Kumar issued notice to the Himachal Pradesh government in response to Adani Power’s appeal. The appeal was filed against a Division Bench ruling of the High Court that overturned an earlier decision favoring Adani.
Initially, a single-judge of the High Court had ordered the State government to refund ₹280 crore to Adani Power in a dispute related to two hydro-electric projects. However, this decision was overturned by the Division Bench, which held that Brakel Corporation, the highest bidder for the projects, had won the award through misrepresentation and suppression of facts. Consequently, neither Brakel nor anyone on its behalf, including Adani Power, could claim the refund.
The dispute dates back to 2006 when Brakel Corporation won the bid for the power projects but failed to deposit the upfront premium on time. Brakel later paid the amount with interest, aided by an investment from Adani Power, which acquired 49% equity in the company. Despite this, conflicts between Brakel and the State government persisted, and Reliance Infrastructure, which had offered to match Brakel’s bid, also entered the legal fray, challenging the government’s decision not to cancel Brakel’s allotment.
In 2009, the High Court ruled that Brakel had changed the membership of its consortium without government approval and had secured the contract through misrepresentation. Continuous litigation ensued, and in 2015, the State government initially decided to refund the upfront premium to Brakel without interest, after receiving a similar payment from Reliance Infrastructure. However, Reliance later expressed its inability to proceed with the projects, and in 2017, the government withdrew its decision to refund Brakel.
Adani Power then challenged this move before a single-judge, who ruled in its favor. However, the State government appealed this decision, and the Division Bench sided with the State, prompting Adani Power to take the matter to the Supreme Court.
(With inputs from agency)
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