Refund of Rs 280 cr to Adani Power paid for Kinnaur project: HC: The Tribune India | Rare Techy

Our correspondent

Shimla, April 21

The HP High Court has ordered the state government to refund within two months an advance premium amount of Rs 280.06 crore to Adani Power Ltd for the Jangi-Thopan-Powari power project in Kinnaur district.

Justice Sandeep Sharma passed the order last week on a petition filed by Adani Power Ltd, challenging the communication of the Special Secretary (Power) on December 7, 2017, where it was conveyed that due to various legal intricacies and contractual complications involved in the matter. , the Council of Ministers has reconsidered and reviewed the decision taken in its meeting held on September 4, 2015, to refund the upfront premium amount deposited by the petitioner for the Jangi-Thopan-Powari power project.

While quashing the communication dated December 7, 2017, Justice Sharma said, “Once the Council of Ministers on September 4, 2015, after taking notice of the complete Cabinet note prepared by the Administrative Department, has decided to refund Rs 280.06 crore to the petitioner, it is not understood that on what basis it reviewed its decision. Although it has been stated that due to the legal intricacies and contractual complications involved in the problem, the Council of Ministers has decided to review the decision taken in its meeting on September 4, 2015, but what those legal intricacies and contractual complications have not been spelled out in the communication.”

In October 2005, the country floated a global tender for the Jangi-Thopan-Powari 980 MW power project. Brakel Corporation was found to be the highest bidder for the project. Brakel Corp deposited Rs 280.06 crore as upfront premium with the state.

However, later the state government decided to re-bid the project. Further, Brakel Corp asked the state through a communication dated August 24, 2013, to refund Rs 280.06 crore to Adani Power Ltd, which is its consortium partner.

Brakel Corp categorically stated that “the petitioner is a bona fide investor and is not involved in the evaluation and award stage. As such, there is no objection, if the money is paid to Adani Power Ltd and it does not have the same rights or claims in the future”.

The court observed, “No party, other than Brakel Corp, can have grouse, if any, for the release of premium upfront in favor of Adani Power Ltd. But since Brakel Corp has written to the state to release the money in favor of Adani Power Ltd, It is not understood what legal intricacies and contractual complications that the situation may encounter, in the event of releasing the amount to Adani Power.