Himachal Pradesh owned entity to receive Rs 401 crore in Wildflower Hall property case

Shimla, Oct 15 (PTI) The Himachal Pradesh government-owned Mashobra Resort Limited (MRL)  will receive Rs 401 crore from the Wildflower Hall property, according to a court order that pronounced the state as the sole owner of the company, officials said on Wednesday.   Hotel Wildflower Hall of the Himachal Pradesh Tourism Development Corporation (HPTDC), once the residence of Lord Kitchener, a former Commander of the British Army, was gutted in a fire on April 5, 1993.

It was later handed over to the East India Hotels (EIH) of the Oberoi group to be run as a joint venture under the title Mashobra Resorts Limited with the government.  An agreement was signed between the state government and EIH on October 30, 1995, to incorporate Mashobra Resorts Limited, a joint venture, for constructing and operating the hotel.

The JVC terms stipulated that the state's share in the company would not be less than 35 per cent, while EIH's would not be less than 36 per cent. Shares were also reserved for a public issue.  As problems cropped up frequently, the government issued an order on March 6, 2002, terminating the agreement on the grounds of "breach of terms."  On Tuesday, the Himachal Pradesh High Court, through an order, pronounced the state the sole owner of the bank balances, share holdings, and 50 per cent of the advance against capital of JVC, a statement said.    According to the order, the bank balances of approximately Rs 320 crore belonging to JVC will be transferred to the state.  In addition, the court has ordered a payment of Rs 25 crore to go to the state government in an arbitral award.

The entire shareholding of EIH in the JVC will be transferred to it for a sum of Rs 13 crore.    Moreover, only 50 per cent of the amount, Rs 68 crore, will be returned to EIH instead of the advance against the capital of Rs 136 crore deposited by it in the JVC, resulting in an additional benefit of Rs 68 crore to the state.   A government spokesperson said the legal battle was sub judice for almost 30 years, and the apex court vide its order dated February 20, 2024, had earlier transferred the possession and ownership of the entire Wildflower Hall property in favour of the State.    The state took physical possession and ownership of the property on March 31, 2025.    The spokesperson said that earlier, the state was not receiving any financial returns from this property, but now it is yielding a positive outcome.    Chief Minister Sukhvinder Singh Sukhu hailed the court order and said his government will protect the interests of the people of the state. PTI BPL VN VN