Tue Nov 19 09:41:48 UTC 2024: ## Himachal Pradesh Government Faces Embarrassment: Delhi Office Seized Over ₹150 Crore Debt
**Shimla, November 19, 2024** – The Himachal Pradesh High Court has ordered the attachment of the state’s Delhi office, Himachal Bhawan, to recover ₹150 crore owed to Seli Hydropower Electrical Company. The debt stems from a cancelled hydropower project.
The court’s decision, handed down on Monday, follows a long-running dispute over the 340 MW Seli Hydropower Electric Project. The state government awarded the project to Seli Hydro Electric Power Company Limited/Moser Baer in 2009, but later cancelled the agreement and forfeited the company’s ₹64 crore upfront premium.
An arbitrator ruled in favor of Seli Hydropower, ordering the state government to repay the premium with interest. When the government failed to comply, the company petitioned the High Court. The court upheld the arbitrator’s decision, and the debt, including accumulated interest, has now ballooned to ₹150 crore.
In a significant blow to the state government, Justice Ajay Mohan Goel ordered the attachment of Himachal Bhawan, located in Delhi’s Mandi House area, allowing the company to potentially auction the property to recover the funds.
The High Court has also directed a fact-finding inquiry into the matter, demanding a report within 15 days from the principal secretary (Power). The next hearing is scheduled for December 6th.
The Himachal Pradesh government has appealed the initial High Court order, with a hearing expected this month. Advocate General Anup Rattan confirmed this appeal. The seizure of Himachal Bhawan represents a major embarrassment for the state government.
First Piper 