Himachal Pradesh High Court Deals Another Blow To Congress Government, Orders Closure Of 18 Hotels Following Himachal Bhawan Attachment

A day after ordering the attachment of Himachal Bhawan in New Delhi, the Himachal Pradesh High Court has ordered the Himachal Pradesh Tourism Development Corporation (HPTDC) to shut down 18 of its 56 hotels, describing them as “white elephants” due to sustained financial losses.

The directive, issued by Justice Ajay Mohan Goel, came during a hearing regarding the non-payment of financial benefits to retired HPTDC employees as the state faces financial woes under the ruling Congress government.

The 18 hotels ordered to cease operations include prominent properties like The Palace Hotel in Chail, Hotel Dhauladhar in Dharamshala, Hotel Devdar in Khajjiar, Apple Blossom in Fagu, and Kunzam in Manali, among others.

The court instructed the HPTDC Managing Director to implement the closures by 25 November, with the next hearing set for 3 December. Justice Goel emphasised that these hotels, which have long suffered low occupancy rates and financial inefficiency, place an undue burden on the state exchequer.

"To prevent the wastage of public resources on these financially unviable properties, their operations must be discontinued," he stated. The court also ordered HPTDC to reassign remaining staff and maintain only essential personnel for the basic upkeep of the properties.

In a detailed directive, the court required the Managing Director to file a compliance affidavit by 3 December, including a list of retired Class-IV employees and families of deceased employees eligible for benefits.

The court further directed that funds generated from dues collected by the corporation be allocated toward pending payments for retirees and deceased employees’ families, Indian Express reported.

The court criticised HPTDC’s inability to operate its properties profitably and noted that hotels with less than 50 per cent occupancy are a significant financial strain on the state. It also acknowledged the state’s ongoing financial challenges, which have been highlighted in various cases.

Meanwhile, hotels performing above the 50 per cent occupancy threshold, such as Hotel Hamir in Hamirpur, Ros Common in Kasauli, and Himachal Bhawan in Chandigarh, will continue operations.