Hotel industry wins capital subsidy war | Latest News Delhi - Hindustan Times
close_game
close_game

Hotel industry wins capital subsidy war

Hindustan Times | ByHarish V Nair, New Delhi
Jun 17, 2011 12:22 AM IST

A Delhi high court has brought great relief to star and heritage hotels across the country. The HC judgment says the Centre cannot deny such hotels capital subsidy if the tourism ministry was responsible for delaying their classification after becoming operational.

A Delhi high court has brought great relief to star and heritage hotels across the country. The HC judgment says the Centre cannot deny such hotels capital subsidy if the tourism ministry was responsible for delaying their classification after becoming operational.

HT Image
HT Image

The court said such an act was sheer injustice as hotels would have spent huge amounts on refurbishment in anticipation of the capital subsidy. The Centre annually comes up with subsidy schemes, which applies to star and heritage hotels.

HT launches Crick-it, a one stop destination to catch Cricket, anytime, anywhere. Explore now!

Justice S Muralidhar found merit in the argument of lawyer Ambar Qamaruddin who represented the petitioners — four Rajasthan hotels denied subsidy on this ground —that “it was the tourism ministry, which delayed the classification and hotels cannot be made to suffer”.

The court said the hotel owners fulfilled essential requirements under the scheme dated December 7, 2007 under which they had applied. “The only reason given by tourism ministry for rejecting their applications was that the classification of their hotels was not completed prior to 31st March 2008... This was not a factor in the control of the applicant hotels,” the court said.

Unveiling 'Elections 2024: The Big Picture', a fresh segment in HT's talk show 'The Interview with Kumkum Chadha', where leaders across the political spectrum discuss the upcoming general elections. Watch now!
SHARE THIS ARTICLE ON
Share this article
SHARE
Story Saved
Live Score
OPEN APP
Saved Articles
Following
My Reads
Sign out
New Delhi 0C
Friday, April 19, 2024
Start 14 Days Free Trial Subscribe Now
Follow Us On