The Himachal Pradesh High Court has directed the immediate closure of 18 loss-making hotels operated by the Himachal Pradesh Tourism Development Corporation (HPTDC). The court referred to these properties as “white elephants,” stating that their continued operation wastes public resources and burdens the state treasury.
The court, led by Judge Ajay Mohan Goyal, held HPTDC’s Managing Director personally accountable for ensuring the closure of these hotels. Properties such as The Palace Hotel Chail, Hotel Dhauladhar Dharamshala, Hotel Kunjum Manali, and Hotel Bhagsu McLeodganj have been ordered to close.
The court’s decision came after reviewing the financial records of 56 HPTDC hotels, revealing significant losses incurred by the 18 listed properties. The judgment highlighted that HPTDC has failed to utilize its resources for profit effectively. It noted that continuing to operate these loss-making establishments was an undue burden on the state treasury, especially as the government repeatedly cites financial crises in court.
“Public resources cannot be squandered on maintaining these properties,” the court stated, emphasizing the importance of directing funds to more productive uses.
The case was triggered by complaints regarding unpaid financial benefits to retired employees of HPTDC. The court expressed concern over the plight of retired Class IV employees and families of deceased employees who have not received their rightful benefits. It directed HPTDC to submit a list of these individuals and ensure timely payment.
Additionally, the Managing Director has been ordered to file a compliance affidavit detailing the steps taken to implement the closures.
This ruling underscores the urgent need for HPTDC to reevaluate its management practices and streamline operations to avoid further financial strain. The court’s intervention aims to prevent the wastage of public funds and ensure that government resources are better allocated, especially during ongoing fiscal challenges. The decision marks a critical turning point for HPTDC, urging a shift from sustaining unviable projects to fostering sustainable tourism development.
