Himachal HC is allowing 9 hotels run by the tourism corporation to operate till March

Bringing some relief, the Himachal Pradesh High Court has allowed nine hotels run by the Himachal Pradesh Tourism Development Corporation (HPTDC) to operate till March, partially modifying its November 19 order to close 18 hotels by November 25.

Hotel Chail Palace, Chandrabhaga Keylong, Khajjiar hotel, Hotel Meghdoot, Log Huts Manali, Hotel Kunjum, Hotel Bhagsu, Castle Naggar and Hotel Dhauladhar may operate till March 30, 2025.

The Tourism Development Corporation has moved an application before Justice Ajay Mohan Goel seeking withdrawal/modification of the November 19 order.

Taking cognizance of the corporation’s plea, the Supreme Court allowed nine of the 18 hotels run by tourism corporations to operate till March 30.

In its proposal, the government referred to advance bookings, including wedding bookings, made at these establishments. Senior Counsel appearing for the State perused the single financial profit statement of 18 hotels and pointed out that some of these hotels, which apart from providing rooms, also provide other facilities in the form of restaurants, banquet halls etc., have recently started generating income from the same. In addition, properties such as The Palace Hotel, Chail and The Castle Naggar also generate income from gate entry tickets.

The legal advisor noted that the state will make every effort to pull the corporation out of the crisis and will also ensure timely payment of contributions of retired employees.

Reacting to the decision, State Finance and Horticulture Minister Jagat Singh Negi said, “Tourism is the backbone of the state’s economy and the concessions provided by the HC will help promote tourism, which provides livelihood to the people employed in these hotels. The BJP is busy defaming Himachal instead of supporting its development.

Himachal Pradesh Chief Minister Naresh Chauhan’s Principal Media Advisor said, “The matter has been under consideration and appropriate action will be taken following the report of the committee formed to reopen nine other hotels. The interests of offices, employees and stakeholders of the tourism corporation were completely safe and they should not be afraid.”

Blaming the previous BJP government, Chauhan said, “The state government was facing challenges that it inherited from the previous BJP government and all efforts were being made to overcome them. The situation has arisen today (closure of hotels) due to mismanagement by the previous BJP government.”

Leader of Opposition and former Chief Minister Jai Ram Thakur said, “Even before the court order, the state government had hatched a conspiracy to sell the hotels. The Congress government in the state is determined to auction the state. The surprise is that profitable tourist hotels are also put up for auction, showing that they are making losses.