Himachal HC raises concerns over financial health of HPTDC
Shimla, Sept 19,
In a scathing observation, the Himachal Pradesh High Court expressed grave concerns over the financial health and management of the Himachal Pradesh Tourism Development Corporation (HPTDC).
Making strong worded direction to Principal Secretary (Tourism) and Managing Director of the Corporation court said that separate affidavits should be filled by the next date of hearing so that something indeed is done to convert these white elephants (properties of the corporation) into profit earning units.
The court, presided by Justice Ajay Mohan Goel, took note of the staggering delay in post-retiral benefit payments to retired employees and pointed to potential financial mismanagement within the corporation.
In response to a petition filed by Jai Krishan Mehta (CWP No. 9681 of 2023), the court reviewed an affidavit submitted by the Managing Director of HPTDC, which revealed alarming details.
The dues owed to retired employees as of August 31, 2024, amounted to a whopping Rs. 35.13 crore.
Despite Himachal Pradesh’s reputation as ‘DevBhoomi’ and a popular tourist destination, the court noted that HPTDC’s properties are not attracting sufficient tourists.
Observations suggest that while tourists are coming to the state in large numbers, they prefer staying in private hotels and dining in restaurants not operated by HPTDC.
This discrepancy has raised serious concerns regarding the corporation’s ability to capitalize on prime tourist locations under its management.
The court questioned why HPTDC properties, which could generate significant revenue, are not contributing positively to the state’s exchequer.
It proposed that the corporation consider leasing out its properties or forming partnerships with private entities to ensure that these assets begin to generate profit.
Justice Goel warned that if no corrective steps are taken, the court may have no option but to order the closure of HPTDC properties, as they are currently a burden on the state treasury.
The Principal Secretary (Tourism) to the Government of Himachal Pradesh has been added as a respondent in the case, and both the Secretary and Managing Director of HPTDC are expected to file affidavits outlining their plans to rectify the situation before the next hearing on October 3, 2024.
The case highlights the pressing need for reforms within HPTDC to ensure the state’s tourism assets are used efficiently, preventing further financial strain on the public purse.
About the Author
The HimachalScape Bureau comprises seasoned journalists from Himachal Pradesh with over 25 years of experience in leading media conglomerates such as The Times of India and United News of India. Known for their in-depth regional insights, the team brings credible, research-driven, and balanced reportage on Himachal’s socio-political and developmental landscape.
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