Cabinet approves revised tender conditions after state gains full ownership; State government expects higher revenue through a transparent bidding process
Shimla — The Himachal Pradesh government has decided to conduct an online global tender for the operation of the historic Hotel Wildflower Hall in Shimla. The decision was taken during a cabinet meeting held on Saturday, where the cabinet approved amendments to the existing tender conditions and directed that the entire process be carried out transparently through MSTC, the Government of India’s e-commerce company.
This development comes shortly after the state government secured 100% ownership of the property, following a prolonged legal battle that spanned nearly three decades. The hotel, located at Mashobra, is currently managed by Mashobra Resort Limited (MRL)—a company now fully owned by the Himachal Pradesh government.
At present, the company managing the hotel pays the government ₹1.75 crore per month, but officials believe that a global tender could fetch significantly higher returns. Wildflower Hall, which boasts over 80 luxury rooms, charges up to ₹1.75 lakh per night during the peak tourist season. The Tourism Department placed the proposal before the cabinet, outlining three options in the draft tender document.
According to the cabinet decision, the global tender will ensure transparency and competitive participation from reputed hospitality operators worldwide.
The decision follows a major victory for the state in the courts. In its October 14, 2025 order, the Himachal Pradesh High Court declared the state as the sole owner of 50% of the joint venture company’s bank deposits, shareholdings, and capital advances. The judgment directed that the JV’s ₹320 crore bank balance be transferred to the state government and that Himachal pay ₹25 crore in compliance with the arbitration award.
Further, the court ordered that East India Hotels (EIH) transfer its entire ₹13 crore shareholding in the joint venture to the state. EIH will receive only ₹68 crore—half of its deposited ₹136 crore capital—while the remaining ₹68 crore will remain with the state as financial gain.
The long-standing dispute over the ownership and operation of Wildflower Hall, formerly managed by East India Hotels under a joint venture with the state, had been pending for nearly 30 years. The Supreme Court, in its order dated February 20, 2024, handed full possession and ownership of the property to the Himachal Pradesh government, which formally took control on March 31, 2025.
Previously, the state was earning no direct financial benefit from the luxury property. However, following the government’s decisive legal and administrative steps, the state exchequer is now set to gain substantially through the upcoming global e-tendering process.
