Double whammy for HP govt as HC orders closure of 18 HPTDC hotels by Nov 25; panic among employees

Shimla: Taking a strong stance on the consistently loss-making Himachal Pradesh Tourism Development Corporation (HPTDC) properties, the Himachal Pradesh High Court on Tuesday ordered the closure of 18 hotels, which also include the Chail Palace and Naggar Castle (Kullu).

These hotels have consistently maintained an occupancy rate below 40% annually, according to the HPTDC.

The order comes two days after the high court ordered the attachment of the Himachal Bhawan in New Delhi over state’s uncleared dues of Rs 64 crore to a private power company.

It was passed by Justice Ajay Mohan Goel on a petition filed by some retired employees of the HPTDC, who have not been paid their dues, arrears of their pensions and

retirement-related benefits.

Justice Goel termed these properties are “white elephants” and drain on public resources with minimal returns.

In his order, he remarked that despite repeated warnings to the HPTDC, the corporation had failed to disburse the financial benefits owed to its retired staff. The court also instructed the tourism department to present a comprehensive list of all retired employees, deceased employees and Class IV staff, ensuring the pending payments are made to both retirees and the families of deceased staff members.

The court had previously ordered the HPTDC to provide detailed reports on the income generated by each of its units over the past three years. Additionally, it sought the list of rooms and restaurant units under the corporation’s management. The ruling reflects growing concerns that these government-run hotels have become a financial burden

on the public.

Meanwhile, a lot of panic has spread among the employees over the order, with many fearing the loss of jobs. The employees claimed that the occupancy in the hotels was mainly impacted

by the Covid-19.

“Closing HPTDC properties solely due to low occupancy is a short-term solution that overlooks the potential for long-term recovery and growth. Instead, a strategic approach involving renovation and professional management can yield better results,” said a staff member of one of the hotels.