SHIMLA, Oct. 16 — Bringing an end to a nearly three-decade legal battle, the Himachal Pradesh High Court has declared the state government the sole owner of the iconic Wildflower Hall property in Mashobra — along with a financial gain of ₹401 crore.
In its judgment dated October 14, the court upheld the state’s complete ownership of Mashobra Resort Limited (MRL), the joint venture company (JVC) earlier co-owned by the Himachal Pradesh government and the East India Hotels (EIH) group of the Oberoi chain.
According to the court order, all bank balances, shareholdings, and 50% of the advance against capital of the JVC are now vested with the state. Wildflower Hall, which was being operated by MRL, will now be entirely under state control.
The high court directed that the JVC’s bank balances — amounting to approximately ₹320 crore — be transferred to the Himachal Pradesh government. It further ordered an additional payment of ₹25 crore as per an arbitral award and the transfer of EIH’s entire shareholding in the joint venture to the state for ₹13 crore.
The court also ruled that only half of the advance capital amount, ₹68 crore out of ₹136 crore deposited by EIH, would be refunded — providing an additional benefit of ₹68 crore to the state exchequer.
A government spokesperson said the case had been sub judice for nearly 30 years. “Due to the intervention of Chief Minister Sukhvinder Singh Sukhu, the apex court, through its order on February 20, 2024, transferred the possession and ownership of Wildflower Hall in favour of the state,” the spokesperson said.
He added that the government completed the physical takeover of the property on March 31, 2025. “Earlier, the state was not receiving any financial returns from this property, but now it is yielding positive outcomes,” he noted.
The ruling marks another major legal victory for the state, coming months after the Supreme Court’s decision on royalty from the Karchham Wangtoo Hydro Electric Power Project. In that case, the court directed JSW Energy to pay 18% royalty instead of 12%, increasing Himachal’s annual earnings from the 1,045 MW project by more than ₹250 crore.
Chief Minister Sukhvinder Singh Sukhu welcomed the high court’s decision, calling it a vindication of the state’s long legal efforts. “The government will continue to protect the interests of the people of Himachal Pradesh and will not compromise at any level,” he said.
