Why Is Himachal Bhawan On Sale?

The Himachal Pradesh High Court has issued an order attaching the Himachal Bhawan in New Delhi, on the account of the Congress-led government's failure to pay Electricity Department's dues.

The court had also ordered the Principal Secretary of the Electricity Department to conduct a fact-finding probe into this matter, so that the responsible officials could be identified.

Previously, the Congress government led by Sukhvinder Singh Sukhu in the state had ignored previous orders by the authorities where it was asked to repay Rs 64 crore, which has come up to Rs 150 crore due to a 7 per cent interest.

The dues can be traced back to the 400 MW Seli Hydro Project on the Chenab river in Lahaul-Spiti. The High Court had previously warned the state government that failure to pay the dues would lead to serious consequences. It further asserted that the funds involved were from the state treasury.

Himachal Bhawan Sale Story

The reason that the Himachal Bhawan is now going on sale is because the high court has allowed the state government to auction the building to recover the outstanding amount.

The state government in turn had filed an LPA (Letters Patent Appeal) against the court's decision.

The state's Chief Minister said that though he did not read the High Court order, "the upfront premium is based on a policy under which, when the energy policy was made in 2006, I was the main architect."

He further added that the reserve price per megawatt on which the companies had bid was decided. "There was a decision made by arbitration in the matter of upfront premium. Our government went to the High Court against the arbitration order and the government had to deposit Rs 64 crore in arbitration."