HP govt to get Rs 401 crore in Wildflower Hall dispute

Chief Minister Sukhvinder Singh Sukhu today said it is due to the concerted efforts of the state government that the legal battle for protecting the interest of the Himachal could be won in the three-decade old Hotel Wildflower Hall dispute.

Sukhu said that according to yesterday’s High Court order, the state government will receive a total of Rs 401 crore from the Wildflower Hall property, establishing the state as the sole owner of the company. The state government and the East India Hotels (EIH) have been engaged in a legal battle for the ownership of the high end resort of Hotel Wildflower Hall, located at Mashobra, 12 km from here.

Sukhu said another important legal success had been achieved in the long pending legal battle as the High Court has ordered that state has become the 'sole owner' of the bank balances, share holdings and 50 per cent of the advance against capital of the Joint Venture Company (JVC), comprising the state government and the Mashobra Resort Limited (MRL), constituted to run the high end property.

An official spokesperson said that as per the court order, the bank balances of approximately Rs 320 crore belonging to the JVC will be transferred to the state.

“In addition, the court has ordered payment of Rs 25 crore to the state as per arbitral award. The entire shareholding of the EIH in the JVC will be transferred to the state for a sum of Rs 13 crore,” he added.

He said only 50 per cent of the amount, which is Rs 68 crore will be returned to EIH in lieu of advance against capital of Rs 136 crore deposited by EIH in the JVC, resulting in additional benefit of Rs 68 crore to the state.

The apex court on February 20, 2024, had earlier transferred the possession and ownership of the entire Wildflower Hall property in favour of the state government which subsequently completed the physical possession and ownership of the property on March 31, 2025. The state government was not receiving any financial returns from this property, but now after the court verdict coming in its favour, the state government will start getting income.