Shimla: The state government today let the division bench of the High Court know that a show cause notice had been issued to the Dutch company Brakel Corporation about allotment of a 960 MW power project.
The matter came up in a case filed by Reliance Energy seeking cancellation of the project to the multinational consortium for violation of allotment terms. The court had directed the government to make its stand clear about its allotment.
A division bench headed by chief justice Jagdish Bhalla asked the government to file a detailed affidavit about the action taken with 10 days about its decision over the allotment of the 960 MW Thopan-Powari project.
The state cabinet in its July 7 meeting had decided to issue a show cause notice to Brakel about why the project allocation to the company should not be cancelled and the Rs 193 crore paid up as upfront money not be forfeited for misrepresentation of facts about the companyâ€™s technical and financial capabilities.