HP High Court Greenlights 9 HPTDC Resorts, Offers a Lifeline to Tourism Sector
Shimla: In a significant relief for the Himachal Pradesh Tourism Development Corporation (HPTDC), the High Court's single bench, headed by Justice Ajay Mohan Goel, allowed the operation of nine HPTDC resorts across the state.
These resorts, which are not running at a loss, had faced uncertainty following an earlier court directive, but today's decision provides a much-needed reprieve.
The bench, while delivering its verdict, upheld its earlier order issued last week regarding loss-making undertakings, stating that the directives for restructuring and compliance would continue.
The ruling came after hearing a plea filed by HPTDC, represented by senior attorney Shravan Dogra, who sought permission to keep these units operational. He pleaded that there are many other business that HPTDC also do and has to obey certain obligation like prebooking of banquet halls.
The Himachal Pradesh High Court continued its hammer on 18 loss-making properties of the Himachal Pradesh Tourism Development Corporation (HPTDC), citing their dismal occupancy rates—below 40% annually.
However, nine properties have been given a lifeline and allowed to function till March 31, 2025, under strict scrutiny.
The Nine Hotels Allowed to Operate
The court has permitted the following hotels to continue their operations:
- Palace Hotel, Chail
- Loghuts, Manali
- Kunzum Hotel, Manali
- Meghdoot, Kiarighat
- Hotel Chandrabhagha, Keylong
- Devdar, Khajjiar
- Hotel Bakhsu, McLeod Ganj
- Hotel The Castle, Naggar
- Hotel Dhauladhar, Dharamshala
Their performance will be reviewed after March 2025 to determine whether they can remain operational, the court ruled.
Corporation Takes Action to Shed "White Elephant" Tag
The decision stems from HPTDC’s years of financial turmoil, with senior counsel acknowledging that several properties had turned into liabilities. The court’s intervention seems to have jolted the corporation into action, Dogra pleaded.
“Steps are being taken to maximize utilization of properties and turn them into profit-making ventures rather than white elephants,” submitted the counsel.
Data presented before the court highlighted that some hotels, despite being on the closure list, were now showing marginal improvements in revenue through restaurants, banquet halls, and gate entry fees, he pleaded.
Bookings Complicate Closure
HPTDC argued that certain hotels, including the Palace Hotel Chail and Castle Nagar, had pending room and event bookings, with advance payments already received.
Modifying the November 2024 order was requested to accommodate these obligations, but the court remained firm.
Court’s Response
While the court refused to modify its November 19 order in totality, it allowed the corporation to continue operating the nine hotels until March 2025.
The continuation of this arrangement hinges on their performance. The rest will remain shut, ensuring the corporation doesn't bleed further.
The court also directed to pay the liabilities of its employees.
What Lies Ahead?
The court’s decision also emphasized paying pending dues to retired employees and demanded a roadmap to prevent such situations in the future.
Justice Ajay Mohan Goel, who presided over the case, stated that the corporation “must learn from this intervention and work towards becoming self-sufficient.”
It’s now up to HPTDC to prove its mettle and ensure that the nine spared properties don’t meet the same fate as their shuttered counterparts.
This move is being seen as a temporary but crucial relief for HPTDC, which has been battling public criticism over the financial health of the tourism sector.
The decision not only safeguards the corporation's revenue-generating units but also bolsters its image, offering hope to employees and stakeholders reliant on these resorts for their livelihood.
While the respite is welcomed, the long-term future of loss-making units remains uncertain, with the court’s directives requiring strict adherence and are subject to be reviewed after the performance of the nine hotels.
