Himachal Pradesh Government Grants 3-Month Extension Post Supreme Court Deadline
Shimla, April 1 – The Oberoi Group will continue managing the luxurious Wildflower Hall hotel in Shimla for an additional three months following a fresh agreement with the Himachal Pradesh government. This decision comes as the previous deadline for the group to return the iconic five-star property expired on March 31, 2025.
Long-standing Legal Battle Comes to a Close
The extended management agreement marks the latest development in a protracted two-decade-long legal tussle between East India Hotels (EIH)—the managing entity of Oberoi Group—and the Himachal Pradesh government. The Supreme Court recently upheld the decision of the Himachal Pradesh High Court, mandating that EIH vacate and hand over Wildflower Hall hotel to the state government by March 2025.
To ensure seamless operation and prevent revenue loss during the transition, both parties reached an interim arrangement permitting Oberoi Group to operate the hotel for three additional months.
Preparations Underway for Future Leasing
As part of the transition strategy, the Himachal Pradesh government has appointed a consultant tasked with drafting bidding documents. These documents will facilitate the upcoming leasing process of the prestigious property.
Sources confirmed that the courts have been notified of this temporary agreement, emphasizing its intent to avoid operational disruptions and maintain revenue streams until a new lessee is finalized.
Judicial Timeline of Wildflower Hall Dispute
The initial directive from the Himachal Pradesh High Court, delivered by Justice Satyen Vaidya on November 17, 2023, authorized the state government to reclaim control over Wildflower Hall immediately. However, EIH appealed against the decision, prompting the court to stay its original order and instruct the government not to interfere in the hotel's day-to-day operations.
A subsequent review petition filed by EIH was dismissed by the High Court on January 5, 2024, which ordered EIH to vacate within two months. Upholding this decision, the Supreme Court, in February 2024, provided EIH until March 2025 to surrender the hotel's possession to the government.
The latest three-month extension reflects ongoing efforts to ensure the smooth transition of Wildflower Hall, widely regarded as one of Himachal Pradesh's premier luxury hotels.