In light of the High Court judgement that Dutch firm Brakel had employed fraudulent means in the execution of the Jangi Thopan Powari mega-hydel project, the Himachal Pradesh government on Thursday cancelled the company’s allotment. The state has decided to invite fresh global bids for the project located at the Satluj basin in Kinnaur.

The decision was taken at a special cabinet meeting held here, which considered last week’s High Court judgement in the Brakel case. The cabinet has now decided to serve a show-cause notice to the company, which has been accused of fraud and misrepresenting vital facts to get the project allotted in 2005 by the earlier Congress government.

“In view of the High Court’s observations about the company using fraudulent means, and also delays, which it had caused in execution of the project, the cabinet took a decision to claim damages. The government will not be returning to the company its deposits (around Rs 280 crore paid as up-front premium, interest money and penality etc) till all damages are recovered,” chief secretary Asha Swaroop announced after the cabinet meeting.

The government has chosen not to give any credence to the offer of Reliance Infrastructure Company to match Brakel’s bid. The High Court, in its 65-page judgement, had left it upon the government to allot the project on the basis of old bids or decide on inviting fresh bids to ensure that the state receives maximum benefits.

ADAG firm Reliance Infrastructure had alleged that Brakel committed fraud and did not have the financial and technical capabilities to execute the project. The high Court had given four-week’s time to the government to decide its next course .