Shimla, October 15, 2025 - Himachal Pradesh has emerged victorious in a nearly three-decade-long legal battle concerning the iconic Wildflower Hall property in Mashobra. The High Court has ruled in favor of the State Government, directing the transfer of ₹401 crore from Mashobra Resort Limited (MRL), the Joint Venture Company (JVC), effectively establishing the state as the property's sole owner. This landmark verdict encompasses all assets, including bank balances, shareholdings, and advances.
The High Court's order, dated October 14, 2025, mandates the transfer of approximately ₹320 crore in bank balances from the JVC to the state, along with ₹25 crore from an arbitral award. Additionally, the entire shareholding of East India Hotels (EIH) in the JVC will be transferred to the State for ₹13 crore. Furthermore, the court directed that only 50% of the advance capital, ₹68 crore out of the ₹136 crore deposited by EIH, will be returned, providing an additional benefit of ₹68 crore to the state.
Wildflower Hall, originally part of the Himachal Pradesh Tourism Development Corporation (HPTDC) and once the residence of Lord Kitchener, was destroyed by a fire on April 5, 1993. Subsequently, it was handed over to East India Hotels (EIH) of the Oberoi Group to be run as a joint venture with the government under the Mashobra Resorts Limited.
A government spokesperson stated that the matter had been pending for almost 30 years but was pursued vigorously under the leadership of Chief Minister Thakur Sukhvinder Singh Sukhu. The Apex Court had previously, on February 20, 2024, transferred the possession and ownership of the property to the State, with the physical takeover completed by March 31, 2025.
According to the government spokesperson, the state was not receiving any financial returns from the property previously. The spokesperson added that this verdict results from the proactive and sustained efforts of the current government, which engaged top lawyers to fight the case in the country's highest courts.
This victory follows another Supreme Court decision in favor of the State, directing JSW Energy Company to pay 18 percent royalty instead of 12 percent from the Karchham Wangtoo Hydro Electric Project, generating over ₹250 crore in annual revenue for Himachal. Chief Minister Sukhvinder Singh Sukhu has expressed satisfaction with the outcome of the Wildflower Hall property case.