The Supreme Court on Monday sought a response from the Himachal Pradesh government regarding a plea by Adani Power Limited seeking a refund of ₹280 crore, along with interest, in connection with two hydropower projects in Kinnaur district
This comes after a division bench of the Himachal Pradesh High Court overturned a single bench’s decision on July 18, which had previously ruled that the ₹280 crore should be returned to Adani Power.
A bench of Justices M M Sundresh and Aravind Kumar of the Supreme Court issued a notice to the Himachal Pradesh government, led by Sukhvinder Singh Sukhu, following Adani Power’s appeal against the high court’s decision.
Adani Power’s plea highlights that the Himachal Pradesh government, through a decision by the Council of Ministers on September 4, 2015, had initially agreed to refund the amount. The company argued that despite this decision, it has been left financially burdened, affecting its investment capacity.
The case revolves around two hydropower projects, Jangi Thopan and Thopan Powari, each with a capacity of 480 MW. In October 2005, the Himachal Pradesh government had invited bids for the projects, with bid submissions closing on March 16, 2006.
On December 1, 2006, a letter of intent was issued to Brakel Corporation, the highest bidder at the time, instructing them to sign the pre-implementation agreement and pay the upfront premium. However, Brakel failed to meet its payment obligations and make progress on the projects.
Subsequently, Brakel agreed to transfer 49% equity to Adani Power, which then paid the upfront premium to the state government. However, the high court ruled that Brakel had secured the project through misrepresentation and suppression of material facts, and therefore neither Brakel nor Adani Power, acting on its behalf, could claim a refund.
(With inputs from agency)
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