Himachal Government Takes Over Wild Flower Hall Hotel From Oberoi Group

Oberoi Group will pay 1.78 crores every month; one day rent is 2.60 lakhs

#WildFlowerHall

Shimla: Himachal Pradesh government has taken control of Hotel Wild Flower Hall as per the order of the High Court. Immediately after taking control of the hotel, the government has made General Manager of Tourism Development Corporation Anil Taneja sit in Wild Flower Hall along with the Accounts Officer.

Both the government officials will keep track of daily billing. Mediation talks were going on between the government officials and Oberoi Group management for the last one week. After assessing the daily and monthly income of the hotel, it was concluded that Oberoi Group’s East India Hotels Ltd (EIHL) will have to pay an amount of Rs 1.78 crore every month.

This payment will continue till the global tender inviting process is conducted by the government. It is expected that within the next three months, Hotel Wild Flower Hall will be handed over to the company selected in the tender process.

Apart from the monthly payment amount, the balance amount has to be paid separately to the Oberoi Group. The determination process is going on in this regard. A week ago, the government had informed the High Court that conducting the global tender process may take time. In such a situation, the current system should be allowed to continue.

85 rooms and daily rent of Rs 2.60 lakh

Hotel Wild Flower Hall has 85 rooms, the minimum rent of which is Rs 30400 and the maximum is Rs 2.60 lakh. The amount to be given to the government has been calculated on the basis of average booking of rooms.

There is a dispute between the Himachal government and East India Hotels Company regarding property. The hotel caught fire in the year 1993. The government had signed an agreement with East India Hotels to develop it again as a five star hotel. The company had to build the hotel in four years.

If this was not done, the company had to pay a fine of Rs 2 crore per year to the government. The government transferred the land in the name of the company in 1996. The company could not complete the hotel in six years. The government cancelled the agreement in 2002.

The Company Law Board gave its verdict in favour of East India Hotels. The government took the matter to court. Meanwhile, the Oberoi group has deposited Rs. 125 crores in the court at the rate of 18 percent. But the previous dues have not been settled yet.