Supreme Court Issues Notice On Adani Power's Plea For Rs 280 Crore Refund
The case pertains to Adani Power's investment in hydroelectric power projects in Kinnaur district of Himachal Pradesh.
The Supreme Court on Monday issued notice in a plea by Adani Power Ltd. for a refund of Rs 280 crore, in connection with two hydroelectric power projects in Kinnaur district of Himachal Pradesh.
The notice has been issued to the state of Himachal Pradesh by a two judge bench led by Justice MM Sundresh.
The case dates back to 2005, when the Himachal Pradesh government had sought bids for two hydro-electric power projects. At the time, Brakel Corporation NV was the highest bidder.
The state of Himachal Pradesh awarded Brakel the tender for the 980 MW Jangi Thopan and Thopan Powari hydroelectric power projects.
However, Brakel failed to make its payments on time.
In accordance with the pre-implementation agreement and Himachal Pradesh's hydropower policy, Adani Power invested Rs 280 crore to enable Brakel to make an initial payment of approximately Rs 173 crore as 50% of the upfront premium and other payments.
This prompted the Himachal Pradesh cabinet to issued a show cause notice to Brakel as to why the allotment made in its favour should not be cancelled on account of alleged misrepresentation.
A high level committee was formed to look into Brakel's conduct which ultimately concluded that suppression of material information by Brakel and its consortium partners could not be established. As a result, it was difficult to sustain cancellation of allotment made to Brakel, the committee said.
In 2015, the state government decided to refund the upfront premium paid by Brakel. However, the state government reversed its decision and the refund was never initiated.
Adani Power filed a case before the Himachal Pradesh High Court in 2019, and a single judge bench accepted its request for refund. This prompted the state to go in an appeal before a division bench of the same court.
The division bench of the high court took exception to the arrangement between Adani Power and Brakel and said that the arrangement was undertaken without the approval of the state. This, the high court said, violated the tender conditions and the hydropower policy.
