Photo used for indicative purpose only. Source Internet
Shimla, Oct 15,
In a landmark victory that ends nearly three decades of legal wrangling, the Himachal Pradesh government has finally emerged as the sole owner of the iconic Wildflower Hall property in Mashobra — along with a financial gain of Rs 401 crore. The Himachal Pradesh High Court, in its judgment dated October 14, 2025, upheld the State’s complete ownership of Mashobra Resort Limited (MRL), the joint venture once co-owned with the East India Hotels (EIH) group of the Oberoi chain.
As per the order, around Rs 320 crore of bank balances in the company’s accounts will now be transferred to the State government. Additionally, the Court has directed that Rs 25 crore be paid to the State as per the arbitral award, and that EIH’s shareholding in the joint venture be bought out for Rs 13 crore. Importantly, of the Rs 136 crore that EIH had earlier advanced as capital, only 50 percent — ₹68 crore — will be returned, giving the State an additional benefit of Rs 68 crore.
With this ruling, the State’s total benefit from the case amounts to nearly Rs 401 crore — a substantial recovery considering that for years, the State derived no revenue from the high-value heritage property that once symbolized luxury tourism in Shimla.
A Long Legal Journey, Now Settled
The ruling comes after a 30-year legal battle between the State and the Oberoi Group over ownership and management rights of the Wildflower Hall property. Earlier, the Supreme Court had, through its order dated February 20, 2024, transferred possession and ownership of the property to the State, paving the way for the High Court’s latest order that consolidates the financial and shareholding aspects of the case. The State government took physical possession of the property on March 31, 2025.
A government spokesperson credited Chief Minister Thakur Sukhvinder Singh Sukhu for “special intervention and persistent legal pursuit,” emphasizing that the State fought the case with “some of the country’s leading lawyers” to secure this final victory.
New Era for Heritage Tourism
As earlier reported by HimachalScape, the dispute over Wildflower Hall has long symbolized the friction between private hospitality interests and State control over heritage assets. With this verdict, Himachal Pradesh not only reclaims one of its most valuable tourism properties but also gains a major opportunity to redefine its approach to heritage-based tourism management.
Officials have indicated that plans are underway to explore sustainable tourism and public-private partnership models for the future management of the property — though the State remains determined not to cede ownership again.
A String of Legal Wins for Himachal
This victory follows another major legal success for the State earlier this year when the Supreme Court ordered JSW Energy to pay an increased royalty of 18 percent instead of 12 percent from the 1045 MW Karchham Wangtoo Hydro Electric Project — a change expected to yield more than Rs 250 crore annually to the State exchequer.
Chief Minister Sukhu hailed the latest judgment as “a triumph of public interest over prolonged legal uncertainty,” adding that his government “will not compromise when it comes to protecting Himachal’s assets and resources.”
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