HC stays order to shut down 18 Himachal tourism hotels

While the detailed judgment in the matter is awaited, a division bench has stayed the single bench’s directive that called for the closure of the hotels by November 25

In a major relief to the state, the Himachal Pradesh high court has stayed the single bench’s directive to shut down 18 Himachal Pradesh Tourism Development Corporation (HPTDC) hotels amid low occupancy.

The case will come up for hearing on January 3 next. (File)

While the detailed judgment in the matter is awaited, the division bench comprising justices Vivek Singh Thakur and Rakesh Kanithla has stayed the single bench’s directive that called for the closure of the hotels by November 25.

Reacting to the development, HPTDC chairperson RS Bali said, “The order comes as a relief to the families of 1,673 employees of the corporation. We operate hotels where there are no hotels. HPTDC’s morals are not about profit or loss, but I agree that the organisation has to be made profitable.”

Justice Ajay Mohan Goyal had earlier directed the HPTDC to close 18 “loss-making” hotels while hearing a petition related to retired employees of the corporation not being given financial benefits.

“Therefore, in order to ensure that public resources are not wasted by the tourism development corporation in the upkeep of these white elephants, it is hereby ordered that the following properties shall be closed forthwith w.e.f. November 25, 2024, as running of these properties is apparently not financially viable,” the court in its order had said.

The court dubbed the hotels a “burden on the state” and took into consideration hotels where occupancy was less than 50%, saying, “Tourism development corporation has not been able to utilise its properties to earn profit therefrom. The continuation of the functioning of these properties but natural is nothing but a burden on the exchequer of the state and the court can take judicial notice of the fact that there is a financial crunch which is daily being propagated by the State in the matters being listed before the court involving finances.”

The case will come up for hearing on January 3 next.