The Himachal Pradesh High Court has ordered the closure of 18 hotels owned by the Himachal Pradesh Tourism Development Corporation (HPTDC), which are facing financial difficulties due to low occupancy rates. Justice Ajay Mohan Goel, in a ruling by a single judge, ordered the closure of these properties by November 25, 2024, PTI reported. The court clarified that the Director General of HPTDC would be responsible for implementing this directive.

The court cited the low occupancy rate of these properties as the main reason for their closure and stressed that public funds should not be wasted on maintaining “white elephants”. The hotels that will be closed include Palace Hotel in Chail, Hotel Baghal in Darlaghat, Hotel Geetanjali in Dalhousie and several other hotels in Dharamshala, Kullu, Manali and other places across the state.

According to the court, occupancy rates at these hotels have been “dismal” and HPTDC has failed to generate profits on these properties. The company had submitted occupancy data for 56 of its hotels over the past three years in response to an earlier court order.

The court declared that the continued exploitation of these properties constitutes a burden on the state’s finances. The ruling recognizes the financial crisis facing the state, with the court noting that relevant financial questions have been frequently brought before it.

In its order, the court outlined its expectations from September 17, 2024, that the company presents a plan to improve its resources. However, no significant measures have been taken to resolve this problem.

The court order includes provisions to retain a limited staff to maintain the closed properties and to reassign remaining employees as needed.

Additionally, the Managing Director of HPTDC has been asked to submit an affidavit confirming the implementation of the closure and provide a list of retired and deceased employees so that all pending dues can be paid to them and their families . The court asked the company to report the status of dues owed to it by the government and private entities in the next court hearing.