Himachal govt gets relief as HC dismisses refund claim by Adani

Shimla: Struggling to restore its fiscal health, the cash-strapped Himachal Pradesh government has received major relief from the Himachal Pradesh High Court.

A division bench comprising Justice Vivek Thakur and Justice Bipin Chandra Negi, on Thursday, set aside a 2022 order by a single bench of the High Court directing the government to return Rs 280 crore to the Adani Group. This amount had been deposited by the company on behalf of Brakel Corporation, which had defaulted on payments.

In a 52-page order, the bench stated that the Adani Group was neither a bidder for the project nor legally entitled to assume responsibility for the upfront payment, and thus was not entitled to a refund.

The case concerns the 960 MW Jangi Thopan Powari hydro-power project in Kinnaur district, for which the Netherlands-based Brakel Corporation had bid competitively in 2005-2006. The company later faced difficulties in paying the upfront money and was accused of misrepresenting its financial standing.

As troubles mounted, Brakel Corporation involved the Adani Group to clear the dues. However, the project faced further issues, and the government forfeited the money. The Adani Group lobbied to recover the funds and initially received relief from a single bench.

By then, the Congress, led by Chief Minister Sukhwinder Singh Sukhu, had come to power. Sukhu instructed Advocate General Anoop Rattan to challenge the single bench order.

In its detailed order, the High Court pointed out that incorrect facts had been presented to the state government regarding the project. The court noted that Brakel Corporation attempted to involve the Adani Group inappropriately, which was against the norms.