EIH Limited has informed the Exchange about General Updates
EIHOTEL · price
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The High Court of Himachal Pradesh has ruled on a long-running dispute related to the Wildflower Hall property in Shimla. EIH must pay Rs. 18.94 crore in penalty and user fees to the State (already deposited in court). The State can acquire EIH's 2.60 crore shares in Mashobra Resort Limited (MRL) for Rs. 13 crore, with valuation fixed at 50% of face value plus Rs. 10 per share (fair market value rejected). A larger Rs. 77.39 crore user-fee claim by the State was withdrawn. EIH is entitled to receive back 50% of the Rs. 136.19 crore it had paid as advance toward equity in MRL, now treated as equity. The company is reviewing the order with legal advisors and exploring further remedies.
The order brings partial closure to a two-decade-old dispute but means EIH will lose its stake in MRL and the Wildflower Hall property at a below-market valuation, while recovering about Rs. 68 crore. The net financial impact is still being assessed, and further legal action could alter the outcome.