Himachal government to receive Rs 401 crore in Wildflower Hall property dispute

Shimla (Himachal Pradesh) [India], October 15 (ANI): Securing another important legal success, the Mashobra Resort Limited (MRL) Company will receive a total amount of Rs 401 crore from the Wildflower Hall property, establishing the Himachal Pradesh government as the sole owner of the company, said an official release.
The High Court of Himachal Pradesh has ordered that the Himachal Pradesh government 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).
As per the High Court's decision dated October 14, the bank balances of approximately Rs 320 crore belonging to JVC will be transferred to the state government. In addition, the Court has ordered the payment of Rs 25 crore to the State as per the Arbitral award.
The entire shareholding of East India Hotels (EIH) in the JVC will be transferred to the state government for a sum of Rs 13 crore.
Furthermore, only 50 per cent of the amount, Rs 68 crore, will be returned to EIH in lieu of advance against the capital of Rs 136 crore deposited by EIH in the JVC, resulting in an additional benefit of Rs 68 crore to the State. MRL was previously a Joint Venture Company of East India Hotel and the Himachal Pradesh government to operate the Wildflower Hall property.
A spokesman of the state government said that the legal battle was sub judice for almost 30 years, but due to the special intervention and sufficient efforts of Chief Minister Sukhvinder Singh Sukhu, the Apex Court vide its order dated February 20, 2024, has earlier transferred the possession and ownership of the entire Wildflower Hall property in favour of the State.
The state government subsequently completed the physical possession and ownership of the property on March 31. He stated that the State Government fought this case vigorously in court, with the assistance of the country's leading lawyers, and secured a victory in the interest of the state's people. He said that earlier, the State was not receiving any financial returns from this property, but now the State is yielding a positive outcome attributed to the proactive efforts of the present State Government.
Earlier, in another case, the Supreme Court delivered a historic decision in favour of the State regarding royalty from the Karchham Wangtoo Hydro Electric Power Project. The Court has directed JSW Energy Company to pay an 18 per cent royalty to the State, instead of the 12 per cent previously paid, from this 1045 MW Capacity power project, which is expected to earn more than Rs. 250 crore per annum for the State.
Chief Minister Sukhu has expressed his happiness with this outcome. He reiterated that the present State Government will continue its efforts to protect the interests of the state's people and will not make any compromises at any level. (ANI)