18 State-Owned Hotels Are Ordered To Close By The Himachal Pradesh High Court Due To A Financial Shortage
Last Updated on November 21, 2024 by Arti Kumari
The State’s Tourism Development Corporation was recently ordered by the Himachal Pradesh High Court to shut down eighteen state-owned hotels because they were not financially viable.
According to Justice Ajay Mohan Goel, the Corporation has not made any money off of these properties, and their continuous operation is only a burden on the State’s coffers.
After examining hotel occupancy over the previous few years, the Court made the observation. It said that the situation was even worse than it had realized.
The Court stated in its November 19 order that “the continued operation of these properties… is nothing but a burden on the State exchequer and the Court can take judicial notice of the fact that there is a financial crunch which is being propagated daily by the State in the matters being listed before the Court involving finances.”
The following hotels have been ordered to close:
(i) Chail’s Palace Hotel,
(ii) Dalhousie, Hotel Geetanjali,
(iii) Darlaghat, Hotel Baghal,
In Dharamshala, the Hotel Dhauladhar
(v) Hotel Dharamshala Kunal,
(vi) Kashmir House Hotel in Dharamshala,
(vii) Apple Blossom Hotel in Fagu,
(viii) Keylong, Hotel Chanderbhaga,
(ix) Khajiar, Hotel Devdar,
(x) Kharapatthar, Hotel Giriganga,
(xi) Kiarighat, Hotel Meghdoot,
(xii) Kullu, Hotel Sarvari,
(xiii) Log Huts Hotel Manali,
(xiv) Manali, Hotel Hadimba Cottage,
(xv) Manali, Hotel Kunzum,
(xvi) Bhagsu Mcleodganj Hotel,
(xvii) Naggar, Hotel the Castle,
(xviii) Shivalik Parwanoo Hotel
According to the Court, the Managing Director (MD) of the Corporation would be directly in charge of making sure these hotels closed.
It further stipulated that the Corporation may move the remaining employees to other locations, even though the skeleton personnel required for property maintenance may be kept on the properties’ grounds.
On December 3, the matter is now scheduled for additional orders. The MD has been instructed by the Court to submit a compliance affidavit.
The directives were issued in a situation involving a former Corporation employee who had not paid his or her debts.
The greater issue of the Corporation’s delay in paying post-retrial payments to retired personnel was noted by the Court on September 17.
It had discussed the bleak state of the tourism organization.
The Court had noted that although the State of Himachal Pradesh is known as “Dev Bhumi” and is acknowledged as a tourist destination, the State’s Tourism Development Corporation appears to be in disarray.
Additionally, it had noted that although visitors were visiting the State, they were not lodging on Corporation property.
“Despite the fact that the Tourism Development Corporation has properties in the most desirable areas of the State, it seems that they are staying in hotels other than those owned by the Corporation and eating at restaurants other than those operated by the Corporation,” the Court had stated.
Case Title: Jai Kishan Mehta vs The Himachal Pradesh Tourism Development Corporation Ltd. and another
