To Address Debt, Court Asks Himachal To Shut Down 18 State-Run Hotels

Thu Nov 21 04:39:40 UTC 2024: ## Himachal Pradesh Forced to Shut Down 18 Hotels Amidst Debt Crisis

**Shimla, India** – The Himachal Pradesh High Court has ordered the closure of 18 state-owned hotels, citing massive losses and contributing to the state’s crippling debt. The decision, described by the court as necessary to prevent further wastage of public funds, impacts prominent hotels across the state, including The Palace Hotel in Chail and several in popular tourist destinations like Manali and Dharamshala. A full list of the closed hotels is available.

The order comes as the state government grapples with a significant financial crisis, recently citing debt issues as a reason for delayed employee benefits. The High Court’s action follows an earlier order to attach Himachal Bhavan, the state guest house in New Delhi, this week. This action is part of an execution petition filed by Seli Hydropower, concerning an unpaid Rs 64 crore (approximately $7.7 million USD) premium.

While State Advocate General Anup Kumar Rattan characterized the order as routine, the potential for auctioning the properties, including Himachal Bhavan, has raised significant public attention. Chief Minister Sukhvinder Singh Sukhu has announced plans to challenge the High Court’s decision in the Supreme Court. However, the state government has yet to offer a comprehensive plan to address its substantial debt and ongoing financial challenges.

State Revenue Minister Jagat Singh Negi acknowledged the hotels’ financial struggles, suggesting that solutions could be found to address the issue, while assigning blame for some of the debt to the previous BJP administration. The court, however, deemed the closure necessary, stating that the hotels, described as “white elephants,” were not generating profits and represented a misuse of public resources. The court held the Managing Director of the Himachal Pradesh Tourism Development Corporation personally responsible for ensuring compliance with the closure order. The long-term implications of the closures for tourism in the state remain uncertain.