Photo used for indicative purpose only. Source Internet
Shimla, Apr 4,
The Himachal Pradesh government has officially taken possession of the luxury hotel Wildflower Hall in Mashobra, Shimla, following a Supreme Court order. However, in a temporary arrangement, the state has permitted EIH Ltd the hospitality arm of the Oberoi Group, to continue managing the property until a new operator is selected through a competitive bidding process.
The Supreme Court, in its February 20, 2024, ruling, had upheld a Himachal Pradesh High Court order directing EIH Ltd to vacate and hand over the five-star property to the state government by March 31, 2025. The deadline was met, and the state assumed control of the hotel, which is estimated to be worth around **₹800 crore**, including its prime forested land near the popular tourist destination **Kufri**.
To ensure smooth operations and avoid disruption for guests, the state government, in a letter dated April 1, 2025, allowed EIH Ltd to continue providing operation and management services. The arrangement will remain in place until a new operator is selected via an e-auction or competitive bidding process.
“This decision is in the interest of the hotel’s guests and to maintain operational continuity, which will also benefit the state financially,” the company stated in a regulatory filing. Wildflower Hall, known for its 84 luxury rooms, sees peak occupancy during the summer season, making its uninterrupted operation crucial for tourism revenue.
The takeover marks the conclusion of a 20-year legal dispute between the Himachal Pradesh government and EIH Ltd over the ownership of the property. The state had argued that the land, originally part of a heritage property linked to Lord Kitchener, was leased under certain conditions that were allegedly violated.
With the Supreme Court’s verdict, EIH Ltd’s shareholding in Mashobra Resort Ltd (MRL), the entity that operated Wildflower Hall, will now be transferred to the state government. The final valuation of shares will be determined by the **Himachal Pradesh High Court**.
The state government has given EIH Ltd a three-month window to participate in the upcoming bidding process if it wishes to regain operational rights. However, the final decision will depend on the auction outcome. Wildflower Hall, nestled amidst lush deodar forests, is one of Shimla’s most prestigious hospitality assets.
Its handover is a significant development for Himachal Pradesh’s tourism sector, with the state now looking to maximize revenue from the property while ensuring its legacy as a luxury destination continues under new management.
The transition is being closely watched by the hospitality industry, as the property’s future operator will inherit a landmark with both historical significance and high commercial value.
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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