In 1992, Enron, a prominent U.S. company, planned to establish a power plant in Dabhol, Maharashtra, with a proposed investment of $2 billion. However, fierce local opposition stalled the project, leading Enron to file a $600 million compensation lawsuit against the Indian government.
Under the Vajpayee government, Harish Salve, a distinguished Indian lawyer, was appointed to defend India’s interests in this high-stakes international arbitration.
Shockingly, P. Chidambaram, a prominent Congress leader, served as Enron’s legal counsel, advocating against India’s interests.
When the UPA government came to power in 2004, with Chidambaram as Finance Minister, he could no longer directly represent Enron but continued to provide legal advice, reportedly favouring the company.
In a stunning move, the UPA government removed Harish Salve from the case and appointed Khawar Qureshi, a UK-based lawyer of Pakistani origin, to represent India.
The decision to entrust a sensitive case involving billions in taxpayer money to a foreign lawyer with ties to Pakistan raised serious questions about the Congress-led government’s judgment and priorities.
Despite India’s strong position in the arbitration, the questionable decisions - Chidambaram’s prior ties to Enron and the appointment of Qureshi led to a predictable outcome: India lost the case.
The government was forced to pay substantial settlements of $800 million to Bechtel & General Electric, who had acquired Enron’s stakes after its bankruptcy. Additionally, Qureshi was paid exorbitant legal fees, further burdening Indian taxpayers.
Notably, Khawar Qureshi later represented Pakistan in the Kulbhushan Jadhav case at the International Court of Justice, underscoring the irony of Congress’s choice.
And Guess who represented India - Harish Salve, who won the case and stayed the death sentence of Yadav, along with getting him consular access, only for a Fee of Rs 1.
This episode, often downplayed by the media, highlights a disturbing pattern of mismanagement and questionable loyalties under the Congress-led UPA.
Their handling of the Dabhol case reflects a legacy of decisions that prioritised foreign interests and compromised India’s sovereignty, leaving taxpayers to bear the cost of their failures.