Court Blames Mismanagement for Pitiable Condition of HPTDC
Shimla: The Himachal Pradesh High Court has banned all new appointments in the Himachal Pradesh Tourism Development Corporation (HPTDC) without prior court permission, highlighting the corporation’s deteriorating financial situation. Judge Ajay Mohan Goyal, in a recent ruling, ordered that no recruitment, whether direct, indirect, contractual, or through outsourcing, can be made by the corporation without explicit consent from the court.
This decision came in response to a case concerning delays in paying post-retirement benefits to former HPTDC employees. The court found the corporation’s poor financial state to be the primary reason for these payment delays, with Rs 35.13 crore owed to retired employees as of August 31, 2024.
The court attributed the financial crisis to mismanagement within HPTDC, warning that if no corrective action is taken, it may be forced to order the closure of the corporation’s properties. The court noted that HPTDC, a government-owned entity, has become a financial burden rather than a source of revenue for the state.
The Principal Secretary of the Tourism Department was made a respondent in the case and tasked with submitting an affidavit addressing the issues raised by the court. The goal is to explore ways to transform HPTDC’s underperforming properties into profitable units. After reviewing an affidavit from the corporation’s Managing Director, the court expressed grave concern over its worsening financial health.
Despite being one of India’s top tourist destinations, Himachal Pradesh’s HPTDC properties have struggled to attract tourists. The court remarked that visitors continue to flock to the state, but many prefer private hotels and non-HPTDC restaurants, leaving HPTDC properties underutilized.
