The Himachal Pradesh High Court has appointed RSM International as the Chartered Accountant to inspect and reconcile the accounts of Mashobra Resort Limited (MRL), a joint venture between East India Hotels (EIH) and the state government for operating Hotel Wildflower Hall.
The decision, delivered by Justice Jyotsna Rewal Dua, arose from the state’s application concerning financial rights and obligations under an arbitral award dated July 23, 2005. The state claimed that EIH had not met its obligations and disputed financial claims, prompting the need for reconciliation.
RSM International is tasked with reviewing MRL’s accounts based on judicial observations and must submit a compliance report by July 14, 2025. The cut-off date for settling disputed accounts has been set as December 7, 2023, when the state resumed the property.
The joint venture agreement, signed in 1995, aimed to establish a luxury hotel. However, disputes arose, with the state alleging EIH failed to operationalize the hotel fully and unlawfully reduced its shareholding. The state terminated the agreement in 2002, leading to prolonged legal proceedings and the arbitral award. The state officially took possession of the property on March 31, 2025.
