SC to hear pleas by R-Infra, Brakel on Sept 23

The Supreme Court will, on September 23, hear cross-appeals by Anil Ambani Group firm Reliance Infrastructure (R-Infra) and Dutch firm Brakel Corporation filed against each other over a Rs 8,000-crore tender by Himachal Pradesh to set up power projects.

A special Bench, comprising Justice Aftab Alam and Justice B S Chauhan, said that it would start its final hearing on the matter on September 23.

Brakel Corporation and the ADAG Group firm are at loggerheads over a Rs 8,000-crore (approximate) tender of the Himachal Pradesh government for its 960 Mw Jangi-Thopan and Thopan Powari power projects.

While filing an affidavit last week, the state government had informed the apex court that it would give the project to the Netherland-based firm, which has business associations with the Adani Group. This was a reversal of the earlier stand of the state government, which had cancelled the tenders on the orders of the Himachal Pradesh High Court.

In the affidavit, the Himachal government had further rejected the allegation of "unfairness" levelled by R-Infra.

On October 22, 2009, following the orders of the Shimla High Court, the state government had cancelled the allotment to Brakel and imposed a penalty of Rs 280 crore for delaying the project.

Passing an order on October 7, 2009, on a petition filed by Reliance Infrastructure, the High Court had cancelled the allotment made by the state government in favour of Brakel.

However, the Shimla High Court had also refused to pass directions to the Himachal government to award the project to the ADAG group firm, which was the second-lowest bidder. Instead, it gave the state government the freedom to either re-tender the entire project or go for old bids.

The High Court's order was challenged by Brakel as well as R-Infra before the Supreme Court. While Brakel challenged the entire order of the High Court in its petition, the ADAG Group firm objected to the option between "fresh and old bids" granted to the government.