Shimla: In a major setback for the East India Hotels Limited, the Supreme Court has upheld a Himachal Pradesh High Court order directing Oberoi group’s flagship firm to vacate the iconic Wildflower Hall in Shimla. This decision marks the culmination of a two-decade legal battle between the hospitality giant and the state government over ownership of the premier property.
The apex court’s ruling paves the way for the Himachal Pradesh Tourism Development Corporation (HPTDC) to take over the reins of Wildflower Hall within one year. This comes as a blow to the Oberoi Group, which had managed the property for over two decades.
A Legacy Marked by Controversy
Wildflower Hall boasts a rich history, initially serving as Lord Kitchener’s residence before coming under HPTDC management. Following a devastating fire in 1993, the then-Congress government entered into a joint venture with the Oberoi Group in 1995, marking a first step towards disinvestment in the tourism sector.
The partnership operated smoothly until a change in power in 1998. The subsequent BJP government, alleging the Oberoi Group’s non-compliance with operational deadlines, annulled the joint venture in 2002. This decision sparked a legal dispute that stretched for over two decades.
Shifting Tides and Legal Battles
The recent turn of events follows the Himachal Pradesh government’s attempt to take over the property in November 2023. While the Oberoi Group challenged this move in the High Court, securing a temporary stay, the legal tide ultimately turned against them.
The High Court’s dismissal of the Oberoi Group’s review petition and subsequent ruling in favor of the state government, citing non-compliance with arbitration terms, ultimately sealed their fate. The Supreme Court’s recent decision upholds this verdict, bringing the long-standing dispute to a close.
The Uncertain Future of Wildflower Hall
As the eviction deadline for the Oberoi Group approaches, an uncertain future hangs over the luxurious Wildflower Hall hotel. The Himachal Pradesh government now inherits the challenging task of managing this prestigious property.
While official details remain scarce, unconfirmed reports suggest that Chief Minister Sukhvinder Singh Sukhu might be exploring a potential partnership with a global hospitality brand. This collaboration, if materialized through a Memorandum of Understanding (MoU), could mark a significant turning point for the hotel’s operations and brand identity.
