Active Stocks
Tue Apr 23 2024 15:59:47
  1. Tata Steel share price
  2. 161.10 -0.46%
  1. Tata Motors share price
  2. 986.60 1.34%
  1. NTPC share price
  2. 346.90 1.12%
  1. Bharti Airtel share price
  2. 1,342.30 3.38%
  1. HDFC Bank share price
  2. 1,507.20 -0.34%
Business News/ Companies / News/  SC orders EIH to hand over Wildflower Hall to Himachal govt
BackBack

SC orders EIH to hand over Wildflower Hall to Himachal govt

The legal battle between EIH and the Himachal Pradesh government over the heritage property in Shimla began 20 years ago.

A view of the Supreme Court of India (SCI) building, in New Delhi. (ANI)Premium
A view of the Supreme Court of India (SCI) building, in New Delhi. (ANI)

Mumbai/New Delhi: The Supreme Court on Tuesday upheld a Himachal Pradesh High Court’s order asking East India Hotels Ltd (EIH) to vacate and hand over the 5-star Wildflower Hall hotel in Mashobra, Shimla, to the state government by March 2025.

Last year, following the high court’s order of 17 November, the state government immediately took control of the hotel. The high court, however, later stayed its order after EIH, a part of the Oberoi Group, filed a review petition before the court. In January, the high court, while admitting a petition filed by the state government, directed an EIH subsidiary to vacate the hotel.

Wildflower Hall is run by Mashobra Resort Ltd (MRL), in which EIH holds a 78.79% stake, according to the latter’s most recent annual report.

An email sent to the representatives of EIH remained unanswered till press time.

Mashobra Resort reported a revenue of 80.23 crore in FY23, rising from 73.85 crore a year earlier. It reported a loss of 30.55 crore in FY23, from a net profit of 28.46 crore in FY22.

The legal battle between EIH and the Himachal Pradesh government over the heritage property in Shimla began 20 years ago.

The high court blocked the state’s takeover attempt, ordering them to stay clear of the property until 15 December. This decision came after EIH challenged the government’s claim of ownership, arguing that the land was originally a freehold estate.

The 20-year-old dispute hinges on land classification and past agreements. While the state insisted the resort sits on government land, Oberoi claimed it was freehold and leased with a share transfer. Further complicating matters, the state alleged unpaid dues of 120 crore by the hotel. According to the company, the building of Mashobra Resort Limited (MRL) is situated on a land that has been classified as freehold, based on the conveyance deed dated 6 February, 1997. EIH and Himachal Pradesh Tourism Development Corporation had signed a joint-venture agreement in October 1995 to form MRL that runs the Wildflower Hall hotel.

EIH, in its December-quarter earnings report, expressed uncertainty about the outcome of the special leave petition filed by it and its subsidiary MRL before the apex court.

 

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Catch all the Corporate news and Updates on Live Mint. Download The Mint News App to get Daily Market Updates & Live Business News.
More Less
Published: 20 Feb 2024, 11:40 PM IST
Next Story footLogo
Recommended For You
Switch to the Mint app for fast and personalized news - Get App