Supreme Court warns Punjab of consequences for ignoring 15-year-old power dues decree

In New Delhi, the Supreme Court rebuked the Punjab government for its staunch opposition to a proposal by Attorney General R Venkataramani to implement a 15-year-old decree on Bhakra Nangal and Beas power dues favoring Himachal Pradesh. The AG, after consulting the states and the Union Ministry of Power and reviewing CAG data, suggested an in-kind settlement that would offset energy arrears against capital cost liabilities, avoiding direct cash transfers.

Senior advocates Kapil Sibal and Balbir Singh, representing Himachal and Haryana, welcomed the plan, but Punjab’s counsel Nidhesh Gupta argued it would be detrimental to the state. The bench, noting Punjab’s history of defying orders, warned that the decree, with accrued interest since 2011, will be enforced and set a hearing for August 12. The court’s admonition underscores the tension between inter-state financial obligations and state resistance to longstanding judgments.