Court Orders Shutdown of Himachal's Loss-Making Hotels

The Himachal Pradesh High Court has ordered the shutdown of 18 loss-making hotels of the Himachal Pradesh Tourism Development Corporation by November 25. The hotels were deemed financially unviable, leading to waste of public resources. The managing director of HPTDC is responsible for enforcing the closure.

The Himachal Pradesh High Court has mandated the closure of 18 hotels managed by the Himachal Pradesh Tourism Development Corporation (HPTDC) citing lackluster occupancy rates and financial unviability. In its order, the court highlighted the inefficiency in utilizing state resources and marked these properties as burdensome "white elephants".

The decision, delivered by Justice Ajay Mohan Goel, requires these hotels to be shut down by November 25. He held the managing director of HPTDC personally accountable for the execution of this directive. Among the properties set for closure are notable hotels in popular locations like Chail, Dalhousie, and Dharamshala.

The court's ruling emphasized the financial difficulties faced by the state and the need to alleviate pressure on its exchequer. Additionally, HPTDC is expected to manage workforce adjustments, retain essential staff for property upkeep, and report compliance and financial updates by December 3.