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Himachal Pradesh to Receive ₹401 Crore in Wildflower Hall Dispute
EIH to be refunded only 50% of its deposit, amounting to ₹68 crore
Chief Minister Sukhvinder Singh Sukhu announced on Thursday that the Himachal Pradesh government has secured a major legal victory in the decades-old Wildflower Hall dispute, ensuring the protection of the state’s interests through persistent legal efforts.
Sukhu said that, following the High Court’s order on Wednesday, the state government will receive ₹401 crore from the Wildflower Hall property, making Himachal the sole owner of the company. The dispute had been ongoing between the state government and East India Hotels (EIH) over the ownership of the luxury resort Wildflower Hall, located near Mashobra, about 12 kilometers from Shimla.
Calling it a significant legal breakthrough, Sukhu said the court had ruled that the state government now becomes the exclusive owner of all bank balances, shareholdings, and capital of Mashobra Resort Limited (MRL) — the joint venture company (JVC) formed between the state and EIH to operate the property.
According to an official spokesperson, the court has ordered that the JVC’s bank balance of approximately ₹320 crore be transferred to the state.
“In addition,” the spokesperson said, “the court has directed the payment of ₹25 crore to the state government, in line with the arbitration award, and ordered that EIH’s entire shareholding in the JVC, valued at ₹13 crore, be transferred to the state.”
He further stated that EIH, which had deposited ₹136 crore as capital in the JVC, will be refunded only 50% of that amount — ₹68 crore, providing the state with an additional benefit of ₹68 crore.
Earlier, on February 20, 2024, the Supreme Court had transferred the possession and ownership of the entire Wildflower Hall property to the Himachal Pradesh government, following which physical possession was completed on March 31, 2025.
While the state had previously received no financial returns from the property, the court’s ruling has now ensured that Himachal Pradesh will begin earning revenue from the prestigious heritage resort.
