Himachal HC orders closure of 18 loss-making HPTDC properties, BJP blames Congress

The condition of these hotels, most of which were located in prime areas, had deteriorated over the past two decades, said HPTDC Chairman, Raghubir Singh Bali.
Himachal Pradesh High Court
Himachal Pradesh High CourtFile photo
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CHANDIGARH: BJP and the Congress are at odds after the Himachal Pradesh HC ordered the closure of 18 hotels run by the Himachal Pradesh Tourism Development Corporation (HPTDC) citing hefty loss and poor occupancy.

In response, the state government has decided to seek a review of the HC order, adding that it would submit a plan to renovate these run-down units and make them profitable.

A single-judge bench constitued by Justice Ajay Mohan Goel on Tuesday said that HPTDC properties should be shut down by November 25 while hearing a petition related to retired employees of the corporation not being given financial benefits. The judge directed that the Managing Director of the corporation would be personally responsible for ensuring the enforcement of the order.

The HPTDC operates a total of 56 hotels in the state, many of which have been running losses for many years. The corporation has also had difficulties in paying salaries and pensions, and the matter of service benefits of pensioners is also pending in court.

Lashing out at the Congress government, BJP MLA Randhir Sharma from Naina Devi alleged that the ruling government is promoting mafia activity in the state.

"The adverse court orders clearly indicate that the Congress regime has failed on all fronts during its two-year rule. The High Court order for closure of so many HP Tourism Development Corporation hotels is yet another reflection on the poor governance under Congress," he said.

He further questioned whether the government will challenge the HC order or lease out the hotels in compliance. He sought an explanation from the CM regarding this issue.

The HPTDC has initiated the process to hand over some properties -- loss-making and low-profit properties -- to private players on an Operate and Management basis to pull the corporation out of the red.

The cumulative loss of the HPDTC stood at Rs 122.38 crore as on March 31, 2022.

Currently 35 out of 55 HPTDC-run hotels and restaurants are operating at a loss. These properties are located at popular hill stations like Kasauli, Kullu, Manali, Dalhousie, Naldehra, McLeodganj and Dharamsala. Some known properties include The Palace (Chail), Kunzam and Log Huts (Manali), The Castle (Naggar), Hotel Meghdoot (Kiarighat) and The Bhagsu (McLeodganj).

Principal Advisor, Media to the Chief Minister, Naresh Chauhan said,"It was during the Jai Ram led BJP Government that the proposal to outsource the Himachal Pradesh Tourism Development Corporation (HPTDC) hotels was mooted ... even the ministers of the BJP didn’t know about the move.’’

He said that the issue of selling or leasing out the HPTDC hotels to private parties was objected in Vidhan Sabha. He blamed the BJP leaders for tarnishing the image of the State nationwide.

"Just to mark their presence in the media and to be in the limelight, five-six Central and State leaders of BJP escalated the issue, criticising the government for not fulfilling its promises and igniting issues as that of Himachal Bhawan in New Delhi and of other HPTDC properties," he said.

"They should rather have taken the adoptive measures during their tenure and it seems that they lacked the administrative and legal knowledge," he added.

Chauhan said that on the issue of paying back the upfront premium to M/s Moser Baer for the hydel power plant proposed over the Chandra-Bhaga river, "we want to clarify again that the company agreed upon to pay Rs 20 lakh per MW in a competitive bid and paid a premium of Rs. 64 crore."

He alleged that the company went to court demanding repayment as it was unable to execute the arbitration agreement to start the project.

"We will fight a legal battle for the same wherein Himachal Bhawan was ordered to be attached. The options were open to the government to make a legal move," he said.

"In case of the closure of the HPTDC units, the government will look as to what alternative is more profitable: outsource or renovate projects. A committee has been formed and a senior IAS officer will table the suggestions soon," he said.

"The BJP was almost ready to lease out the tourism properties, particularly the hotels. One bidder was even asked to take over a few tourism units who, as per my knowledge, took a huge loan for the same. This is an issue that must be inquired," he stated.

"The BJP has been trying to defame Himachal in wake of elections being held in Maharashtra, Jharkhand and bye-polls in Punjab and Uttar Pradesh,’’ he said.

Himachal Pradesh Tourism Development Corporation Chairman, Raghubir Singh Bali said, "We will share the roadmap to enhance occupancy in these hotels to 90 per cent with the high court. The condition of these hotels, most of which were located in prime areas, had deteriorated over the past two decades.’’

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