In a bid to alleviate financial stress on the state exchequer, the Himachal Pradesh High Court has directed the closure of 18 loss-making hotels owned by the Himachal Pradesh Tourism Development Corporation (HPTDC). The single-judge bench of Justice Ajay Mohan Goel ordered the shutdown of these properties by November 25, holding the HPTDC Managing Director personally accountable for compliance.

Describing the hotels as “white elephants,” Justice Goel stated that their continued operation, despite low occupancy rates, constitutes an unnecessary burden on public resources. The court observed, “The continuation of functioning of these properties is nothing but a burden on the exchequer of the State,” emphasizing the state’s current financial constraints.

To prevent further wastage of public funds, the court ruled that the following hotels must cease operations: The Palace Hotel Chail, Hotel Geetanjali Dalhousie, Hotel Baghal Dadlaghat, Hotel Dhauladhar Dharamshala, Hotel Kunal Dharamshala, Hotel Kashmir House Dharamshala, Hotel Apple Blossom Fagu, Hotel Chandrabhaga Keylong, Hotel Deodar Khajjiar, Hotel Giriganga Kharapathar, Hotel Meghdoot Kyarighat, Hotel Sarvari Kullu, Hotel Log Huts Manali, Hotel Hadimba Cottage Manali, Hotel Kunjum Manali, Hotel Bhagsu McLeodganj, Hotel The Castle Naggar Kullu, and Hotel Shivalik Parwanoo.

Reacting to the order, Himachal Pradesh Revenue Minister Jagat Singh Negi raised concerns about the potential job losses resulting from the closures. “If these hotels were not doing financially well, alternative steps could be taken. These properties are located at prime locations, and instead of shutting them down, efforts should be made to improve their viability,” Negi said. He added that while the court can comment on such institutions, the decision to operate or close them ultimately lies with the state government.