Controversy stricken Shilon Resort, which is battling bitter management feud and on tax department radar for not paying necessary luxury and sales tax (which is in lakhs), entangled in yet another controversy as it’s found that Shilon Resort has defunct in paying long standing dues of Karoli Society and other small vendors of Shimla and Solan.

It is learned that Shilon Resort has to pay over 32 lakhs outstanding to Karoli Society and over 25 lakhs to other small vendors like vegetables, chicken-meat, Gas, grocery, dairy and others who used to provide daily needs goods supply to the resort. However, most of the local vendors have stopped supplying to resort since mid 2012, now looking for possible way to recover their payments.

Karoli Society claimed to have advance cheque from Shilon resort, but it’s learned that most of bank accounts of Shilon resort were seized through court orders and it’ll be interesting to see how these cheques will be liquidated.

Rapidly increasing outstanding balance of Karoli society, which was 9 lakhs in 2009 and now it’s over 32 lakhs, and no strong step for the relief of the society raises serious questions. The Shilon resort is neck deep in debt as its finding difficulties in running its daily expenses, how co-operative society, which is accountable to its members, will recover its dues.

Interestingly, Umesh Phalpher, who claimed to be MD and Chairman of Resort, denied any knowledge about the outstanding of Karoli Society and other local vendors.

Whereas, Harmit Ghai, founder member of company and also claimed to be the MD of company, raised doubts over Phalpher led managements and accused them for siphoning money from company. He accused them for ruining the company and pilling outstanding and decreasing turnover were the live example of it.