[ad_1]
The state government and the Oberoi Group have been locked in a bitter battle for more than two decades over the possession of the property.
“The State of Himachal Pradesh has become entitled to take possession and management of the ‘Wild Flower Hall Hotel’ along with the entire property that was the subject matter of the JVA (Joint Venture Agreement),” said Justice Satyen Vaidya.
“The non-applicants/execution petitioners (EIH Ltd) are directed to vacate the entire property…and handover vacant and peaceful possession thereof to the State of Himachal Pradesh within two months from the date of passing of this order,” Justice Vaidya said in an order.
Ahead of the court’s order, the Himachal Pradesh government had argued that since EIH had failed to comply with the direction of the arbitral award of July 23, 2005, the state government had decided to resume the ‘Wild Flower Hall’ property and take its possession in terms of the award.
In 1995, the Oberoi Group converted the property spread over 77,000 square meters into a five-star hotel after signing an agreement with the Himachal Pradesh government through a joint venture called Mashobra Resort (MRL). Under the arrangement, the state government received shares that translated into an unspecified stake in the venture. As per its annual 2022-2023 report, EIH held a 78.79% stake in MRL.However, the hotel could not be made operational within the stipulated time frame, and differences cropped up between the two parties. The state government has been attempting to scrap the arrangement and regain possession of the property.
[ad_2]
Source link