SC issues notice to HP on Adani Power's plea seeking Rs 280 cr refund

The Supreme Court on Monday sought response from Himachal Pradesh on a plea filed by Adani Power Limited seeking a refund of Rs 280 crore along with interest from the state government in connection with two hydropower projects in Kinnaur district.

On July 18, a division bench of the high court had overturned the decision of a single bench to return the amount of Rs 280 crore to Adani Power.

An apex court bench of Justices M M Sundresh and Aravind Kumar issued notice to the Sukhvinder Singh Sukhu government on the appeal filed by Adani Power challenging the high court order.

Adani Power has moved the top court against the high court judgment.

"It will be crucial to mention here that the Council of Ministers (of Himachal government) had decided to issue the refund vide decision on September 4, 2015. Admittedly, the State on its volition had decided to refund the said monies to the petitioner (Adani Power).

"However, the petitioner has remained out of pocket without any reason and at the peril of the state. This has grossly affected the financial capacity and investment inflow of the petitioner," the plea filed by Adani Power in the apex court said.

The division bench of high court had delivered the judgment after hearing a petition filed by the Himachal Pradesh government against the decision of the single bench in 2022.

The controversy in the case pertains to two hydro-electric projects -- Jangi Thopan and Thopan Powari of 480 MW each.

The Himachal Pradesh government had issued an advertisement for the two projects in October, 2005. The bid documents were issued in November, 2005 and the last date for submission of bid document was March 16, 2006.

On December 1, 2006, a letter of intent was issued by the state government in favour of Brakel Corporation which was the highest bidder, and the company was directed to sign the pre-implementation agreement and deposit the upfront premium.

However, Brakel failed to make its payments on time and take any steps to implement the projects.

Brakel later agreed to transfer 49 per cent equity to Adani Power and the upfront premium was paid by Adani to the state government for the project.

The high court in its order had said, "Brakel had obtained the award in its favour based on misrepresentation and suppression of material facts. In such a situation and following the well-settled principles which have been enunciated above, neither Brakel nor anyone on its behalf could have claimed a refund.