Payment of Rs 280 Cr upfront money to Adani Power by Himachal

The legal battle on the return of Rs 280 Crore upfront money to Adani power and the decision taken by the previous Virbhadra rule have become sore throat for the Sukhvinder Singh Sukhu Government as the division bench Himachal Pradesh High Court is hearing the argument in the matter on the day to day basis.

Before the division bench of Himachal Pradesh comprising of Justice Vivek Singh Thakur and Justice Vipin Negi parties including the State of Himachal Pradesh, Power Director, and Adani powers presented their arguments in the matter till October 6.

Now the matter was deferred till Monday in which the counsel for Adani’s power would give a rebuttal on the argument presented by state counsel till October 6 in the matter.

During the course of arguments, the Adani power maintained that the Virbhadra Singh government decided to return the upfront money to the corporate house before allotment of the Jangi Thopan Project of Kinnaur district of Himachal Pradesh

However Sukhu government after eight years of this decision seems to be in the trap of countering the legitimacy or clarifying the former Congress government decision taken in 2015 to return Rs 280 crore to Adani power.

As per the case details in 2006-07, the then Virbhadra Singh government had allotted two power projects of 980 MW at Jangi Thopan and Powari in Kinnaur to Netherlands company Brekel NV. 

 Breakal had to deposit Rs 260 Cr as upfront money to the government. The alleged payment of upfront money by Adani Power was revealed after the cancellation of this allotment from Berkeley NV.

During the futile attempt to allot this project to the Ambani Power state government in 2015 cabinet decided to return the same money to Adani Power after the former deposited it. 

However, in 2017 erstwhile Virbhadra Singh government took u -turned and wrote a letter to Adani power that it was unable to return this amount to Adani as per the provisions of the bid due to legal complications.

A vigilance investigation was started against Brekal NV in 2008 for submitting the fake Bank documents and FIR was also registered under section 420. Investigation into the matter never progressed further since then.

In 2019, Adani filed a petition in the State High Court demanding returning of front money.. 

Deciding the matter in favor of Adani’s power in April 2022, Justice Sandeep Sharma ordered to return this amount to Adani within two months. Failing to deposit the amount within notice of two months from the court order the government will have to pay ten percent interest. In the judgment, Justice Sandeep Sharma also commented on the role of Jairam Cabinet that the Cabinet did not explain what are the legal implications and complexities of returning the money. 

The state government has now challenged the Single bench decision in the review petition before the double bench. The state had got stay against this decision. 

Now on Monday, the counsel of Adani Power would present a rebuttal of arguments made by the government before the division bench of Justice Vivek Thakur and Justice Vipin Negi.

During the last two weeks, the division bench has also had arguments about Adani’s power Last week and State this week.

In the time of natural calamity, the state coffer in the whooping debt trap and precarious financial situation of the state government couldn’t afford to return 280 Cr by losing this legal battle against the country,’s biggest corporate house.