Himachal government secures major legal victory in Wildflower Hall case, to receive ₹401 crore and full ownership of property

wildflower hall shimla

In a major legal breakthrough, the Himachal Pradesh government has successfully secured ownership of the iconic Wildflower Hall property along with ₹401 crore from the Mashobra Resort Limited (MRL) company. Following the Himachal Pradesh High Court’s decision, the state will now become the sole owner of the venture.

As per the High Court’s order dated October 14, 2025, the state has been declared the sole owner of 50 percent of the joint venture company’s (JVC) bank deposits, shareholdings, and capital. Approximately ₹320 crore from the JVC’s bank balance will be transferred to the state. Additionally, the court directed that ₹25 crore be paid to the state in line with the arbitration award, and East India Hotels (EIH) Ltd.’s entire shareholding of ₹13 crore in the company be transferred to the state government.

The court also ordered that only 50 percent (₹68 crore) of the ₹136 crore capital invested by EIH in the joint venture will be refunded to it, giving the state an additional benefit of ₹68 crore. Notably, MRL was previously a joint venture company formed between the Government of Himachal Pradesh and EIH Ltd., which managed the Wildflower Hall property.

According to a government spokesperson, this legal dispute had been ongoing for nearly three decades. Through the direct intervention and efforts of Chief Minister Sukhvinder Singh Sukhu, the Supreme Court, on February 20, 2024, ordered the transfer of full possession and ownership of the Wildflower Hall property to the state government. The government officially took physical possession of the property on March 31, 2025.

The spokesperson added that the case was argued strongly in court with the assistance of top legal experts, resulting in a long-awaited victory in favor of the people of Himachal Pradesh. Until now, the state had not derived any financial benefit from this property.

Earlier, the state government had also achieved another legal success when the Supreme Court ruled in its favor in the Karcham-Wangtoo Hydroelectric Project royalty dispute. The court directed JSW Energy to pay 18% royalty instead of 12%, resulting in additional annual revenue of over ₹250 crore for the state.

Editor of Wise Himachal, a platform dedicated to delivering insightful and timely news from Himachal Pradesh. With a diverse background in media, branding, and event management, I aim to bring stories that matter to our audience.