Oberoi Group to run Wildflower Hall hotel in Shimla for 3 more months
Himachal Pradesh high court informed about agreement between Oberoi Group and Himachal Pradesh government to avoid revenue loss until five-star hotel is leased out.
The Oberoi Group will manage Wildflower Hall hotel for three more months under a new agreement with the Himachal Pradesh government, as the deadline for returning the luxury hotel expired on March 31.
The two-decade-long legal battle between East India Hotels and the state government over Wildflower Hall, a five-star property, had ended with the Supreme Court upholding the order of the Himachal Pradesh high court and directing EIH to vacate and hand over the possession of the hotel to the state government by March 2025.
However, an agreement has been reached between the Oberoi Group and the Himachal Pradesh government, under which the Oberoi Group will manage the hotel for three more months.
A consultant to draft the bidding documents for leasing the property has been appointed, officials said on Tuesday.
The court has been informed about the agreement as per which the Oberoi Group would operate the hotel for the next three months. Extension has been given to avoid revenue losses until the property is leased out, a source said.
A single bench of the high court consisting of Satyen Vaidya had passed orders on November 17, 2023, permitting the government to take over the property and the state government immediately took control of the hotel.
However, the high court later stayed its order after EIH filed an appeal and directed the government not to interfere in the day-to-day function of the hotel.
The EIH filed a review petition against the order that was rejected by the high court on January 5, 2024, with directions to vacate the property within two months.
The Supreme Court in February 2024 upheld the judgment of the high court and asked the EIH to surrender the possession to the government within a year by March 2025.
