JPVL, part of Jaypee Group, is operating the 1,000 MW project.
Sources said that CEA is likely to issue show cause notice to JPVL for alleged violations with respect to techno-economic clearance granted to Karcham Wangtoo plant.
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It is alleged that the techno-economic clearance was given for 1,000 MW while the plant is running at 1,200 MW generation capacity, they added.
The Central Electricity Authority (CEA) is the apex planning body for the domestic power sector.
The Karcham Wangtoo plant is among the three hydro power projects that are to be sold by Jaypee group to Reliance Power in a Rs 12,000-crore deal.
Meanwhile, electricity watchdog CERC has asked JPVL to expedite filing of tariff petition for the Karcham Wangtoo hydro project.
The direction from the Central Electricity Regulatory Commission (CERC) came after the utility sought withdrawal of provisional tariff petition related to the plant.