The Himachal Pradesh High Court on Wednesday ordered the immediate closure of several non-profitable hotels operated by the Himachal Pradesh Tourism Development Corporation (HPTDC), highlighting the financial burden imposed on the state exchequer due to underperforming properties.

Justice Ajay Mohan Goel remarked that the continuation of such properties is akin to “white elephants,” draining public resources with minimal return on investment, Live Law reported.

HPTDC managing director Rajiv Kumar on Wednesday said that these hotels are a heritage of the state government, Indian Express reported. He added, “We will file a review petition in the matter in the high court.”

The order, issued by Justice Ajay Mohan Goel on Tuesday, came during the hearing of a petition concerning the non-payment of financial benefits to retired employees of the corporation.

“To ensure public resources are not wasted… on these ‘white elephants,’ it is hereby ordered that the properties listed shall cease operations effective November 25, 2024, as their continued functioning is financially unfeasible,” the court added.

The high court asked the HPTDC managing director to comply with the closure orders by November 25 and set the next hearing date for December 3. The HPTDC operates 56 hotels across the state of which 18 have been ordered to be shut. Many of these hotels have been incurring losses for years and have struggled to pay salaries and pensions, with the matter of pensioners’ service benefits still pending in court.

The 18 hotels ordered to close include The Palace Hotel (Chail), Geetanjali (Dalhousie), Hotel Baghal (Darlaghat), hotels Dhauladhar, Kunal, and Kashmir House (Dharamshala), Apple Blossom (Fagu), Chanderbhaga (Keylong), Hotel Devdar (Khajjiar), Giriganga (Kharapathar), Hotel Meghdoot (Kiarighat), Sarvari (Kullu), Log Huts, Hadimba Cottage, and Kunzam (Manali); Hotel Bhagsu (Mcleodganj), The Castle (Naggar) and Hotel Shivalik (Parwanoo), according to IE.

The court also noted that hotels with less than 50 per cent occupancy were a “burden on the state” and criticised the corporation for failing to utilise its properties profitably. It observed, “The continuation of these properties’ operations is a burden on the state exchequer. The court takes judicial notice of the state’s financial crunch, which is frequently highlighted in cases involving finances.”

This decision comes as the Congress government in Himachal Pradesh is battling massive debt and unpaid dues. Earlier this week, the court had also ordered the attachment of Himachal Bhavan, the state guest house in New Delhi.