Himachal Pradesh High Court orders closure of 18 loss-making tourism corporation hotels

Shimla: Eighteen loss-making hotels of the Himachal Pradesh Tourism Development Corporation with poor occupancy were ordered to be shut down by the high court on Tuesday.

A single-judge bench of of Justice Ajay Mohan Goel said that HPTDC properties should be shut by November 25 and directed that the managing director of the corporation would be personally responsible to ensure the enforcement of the order.

The properties were being closed as they are financially unviable, the court said, adding that public resources should not wasted by the HPTDC in the upkeep of "these white elephants".

The Palace Hotel (Chail), Hotel Geetanjali (Dalhousie), Hotel Baghal (Darlaghat); Hotel Dhauladhar, Hotel Kunal Dharamshala and Hotel Kashmir House (Dharamshala); Hotel Apple Blossom (Fagu), Hotel Chandrabhaga (Keylong), Hotel Devdar (Khajiar), Hotel Giriganga (Kharapatthar), Hotel Meghdoot (Kiarighat), Hotel Sarvan (Kullu); Hotel Log Huts, Hotel Hadimba Cottage and Hotel Kunzum (Manali); Hotel Lihagsa (Mcleodganj), The Castle (Naggar) and Hotel Shivalik (Parwanoo) will be closed by this Monday, as per the order.

The occupancy in these hotels are "much more dismal" than what the court's expectation, which demonstrates that the HPTDC has has not been able to utilise its properties to earn profit, the judge said.

The corporation handed over the occupancy figures for the last three years in 56 hotels currently run by it, in compliance with the last order passed by the court.

The court, in its order on Tuesday, said that the continuation of the functioning of these properties is nothing but a burden on the state exchequer.

The bench has taken a judicial notice of the fact that there is a financial crunch in the state, which is reflected in the matters involving finances listed before the court, the order said.

"Passing a detailed order on September 17, 2024, the court expected that the respondents would come up with something cogent and concrete to augment the resources of the corporation but till the dictation of this order, not even a small pebble has been moved or turned in this direction by the corporation", the order said.

The court also ordered that the skeletal staff which is necessary for the upkeep of the properties mentioned be retained in the premises and the corporation will be at liberty to transfer the remaining of its employees so that its need in other places are duly met.

The judge directed the managing director of HPTDC to file a compliance affidavit regarding the implementation of the order to close the hotels.

The MD was also directed to furnish a list of superannuated Class-IV employees and deceased former staff, so that amount generated from dues received by HPTDC can be released to them and their families, according to the order.

The corporation will also inform the court regarding the dues paid to it by government and private entities on the next date of hearing on December 3, it said.