Court Allows Nine Himachal Hotels to Operate, Averts Shutdown

The Himachal High Court provisionally permits nine hotels managed by Himachal Pradesh Tourism Development Corporation to remain operational until March 2025. This decision follows a previous order to shut down 18 unprofitable properties. The corporation aims to maximize utilization and address financial challenges.


Devdiscourse News Desk | Shimla | Updated: 22-11-2024 21:29 IST | Created: 22-11-2024 21:29 IST
Court Allows Nine Himachal Hotels to Operate, Averts Shutdown
This image is AI-generated and does not depict any real-life event or location. It is a fictional representation created for illustrative purposes only.
  • Country:
  • India

The Himachal High Court has given the green light for nine out of 18 loss-making hotels, run by the Himachal Pradesh Tourism Development Corporation (HPTDC), to continue operating until March 2025. The court's recent decision comes as a temporary relief following Tuesday's order to cease the hotels' operations due to financial issues.

A single-judge bench of Justice Ajay Mohan Goel emphasized that the order is not a complete modification but allows the extension for operational purposes. This decision comes after HPTDC filed an application citing reasons such as pre-existing room bookings and events, pledging more robust financial management of the properties.

The properties, including prominent hotels like The Palace Hotel in Chail and Hotel Bhagsu in Mcleodganj, were initially closed due to being economically unsustainable, labeled as 'white elephants.' However, the state's principal media adviser assures all stakeholders of their security and attributes mismanagement to the former government.

(With inputs from agencies.)

Give Feedback