Shimla, Nov 25,
The Himachal Pradesh High Court’s Division Bench comprising Justices Vivek Singh Thakur and Rakesh Kanithla has stayed the Single Bench’s directive to shut down 18 Himachal Pradesh Tourism Development Corporation (HPTDC) hotels due to low occupancy. While a detailed judgment in the matter is awaited, the Division Bench has halted the closure of nine hotels, which were to cease operations starting November 25, 2024.
” The order has been stayed pending the resolution of the outstanding dues, which HPTDC has committed to clear,” informed Senior Advocate Shravan Dogra, wile talking about it to a media.
Earlier, on November 19, 2024, the Single Bench led by Justice Ajay Mohan Goel had ordered the closure of these 18 HPTDC hotels, citing their financial non-viability. The order stated that to avoid wastage of public resources, these properties—termed as “white elephants”—should be closed. Following a plea by HPTDC highlighting prior commitments such as weddings and other events, an interim relief was granted, allowing nine hotels to continue operations until March 2025.
The properties which were ordered to be closed included The Palace Hotel, Chail, Hotel Geetanjali, Dalhousie, Hotel Baghal, Darlaghat, Hotel Dhauladhar, Dharamshala, Hotel Kunal Dharamshala, Hotel Kashmir House, Dharamshala, Hotel Apple Blossom, Fagu, Hotel Chanderbhaga, Keylong, Hotel Devdar, Khajiar, Hotel Giriganga, Kharapatthar,Hotel Meghdoot, Kiarighat,Hotel Sarvari, Kullu, Hotel Log Huts Manali, Hotel Hadimba Cottage, Manali, Hotel Kunzum, Manali, Hotel Bhagsu Mcleodganj, Hotel the Castle, Naggar and Hotel Shivalik Parwanoo.
Following the Single Bench’s order, the State Government and HPTDC filed an appeal with the Division Bench, which has now provided temporary relief by staying the closure directive. This decision ensures that operations at the affected hotels will continue until the final adjudication of the matter.
As the matter is now listed for January 3, the outcome of this case will have significant implications for HPTDC’s future management of underperforming properties.
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