The Himachal Pradesh High Court has ordered the attachment of Himachal Bhawan located in Delhi for the recovery of Rs 150 Crore owed by the state government to Seli Hydropower Electrical Company following an arbitration ruling in favour of the power firm.

Passing the order on Monday, a single-judge bench of Justice Ajay Mohan Goel said the company may take appropriate steps for the auction of Himachal Bhawan located in central Delhi's Mandi House area thereof.

Advocate General Anup Rattan said the Himachal Pradesh government has filed an appeal against the initial HC order and it is likely to come up for hearing this month. The case pertains to the 340 MW Seli Hydropower Electric Project on the Chenab River in Lahaul and Spiti district.

The state government awarded the project to Seli Hydro Electric Power Company Limited/Moser Baer and issued the Letter of Allotment (LOA) on February 28, 2009, following which the firm deposited the upfront premium of Rs 64 Crore.

However, the project did not materialise. The state government cancelled the LOA and ordered forfeiture of the upfront premium. The company challenged the decision before an arbitrator which ruled in its favour and asked the government to deposit the upfront premium with interest.

After the state government did not comply with the order, the company filed a petition before the high court under Article 226. The court found merit in the petitioner's contention that the project had become technically and financially unviable and its prayer for withdrawing from it deserved to be allowed.

The HC also upheld the decision of the arbitrator on January 13, 2023, and directed the government to deposit the upfront premium with interest with the Registry. Due to the delay in payment, the amount has increased to Rs 150 Crore with the accumulation of seven per cent interest from the date of filing of the petition. The high court, in its Monday order, also directed the Principal Secretary (Power) to order a fact-finding inquiry to identify the officers responsible for the lapse and sought its report within 15 days before the next hearing on December 6.

The BJP said it is a clear failure of the Congress government.

"The state government is unable to defend itself and our prestigious properties like Himachal Bhawan located in Mandi House in Delhi are being attached which is a clear failure of the government," said Leader of Opposition in the state assembly Jai Ram Thakur. Chief Minister Sukhvinder Singh Sukhu, however, dismissed criticism on the issue. "Depositing Rs 64 Crore is not a big thing for the state government but we are fighting a legal battle," he told media persons here.