Shimla HC allows 9 of 18 crisis-hit Himachal Pradesh govt hotels to run till March

SHIMLA: HP high court allowed Friday nine of 18 loss-making hotels of Himachal Pradesh Tourism Development Corporation (HPTDC) to continue operations until March 31 next year, modifying a Nov 19 order that required all the state-run properties to shut down from Nov 25 due to the cash crunch and unpaid staff dues.

A single bench of Justice Ajay Mohan Goel clarified that the continuation of the nine hotels would be reviewed after March.

HPTDC had urged the court to allow at least nine of these hotels to continue, citing earnings from other sources, including restaurants, banquet halls and entry tickets, despite their low occupancy rates. Some of these hotels have obligations such as room and event bookings, with advances already received, HPTDC said.

Justice Goel had earlier called the 18 hotels "white elephants" and ordered them shut as they had less than 40% occupancy in last few years, including Palace Hotel in Chail. The order had come on a plea by some retired HPTDC employees denied their dues.


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