MAHIPAL SINGH Vs. MINISTRY OF TOURISM

JUDGEMENT

(1.) THE common issue in all these petitions concerns the interpretation of certain clauses of the revised scheme of "Incentive to Accommodation Infrastructure" announced by a notification dated 7th December 2007 of the Department of Tourism (,,DOT), Government of India.

(2.) THE background to the above scheme is that the DOT had been issuing notifications in 2003 and 2004 to encourage growth of Budget Hotel Accommodation for promotion of tourism in the country. In supersession of those notifications, the DOT issued on 30th September 2004 a notification announcing the scheme of "Incentive to Accommodation Infrastructure". THE objective of the scheme was to provide incentives to newly approved hotel projects in 1 to 3 Star and Heritage (Basic) categories in the country except the four metropolitan cities of Delhi, Mumbai, Kolkata and Chennai. THE said scheme for grant of capital subsidy was to be effective for the whole 10th Five Year Plan from 1st April 2002 to 31st March 2007. THE scheme would apply to all hotels in 1 to 3 Star and Heritage (Basic) categories "where the hotel projects have been completed and classified during the 10th Plan Period." THE incentive was to be in the form of "capital grant of 10% of the total principal loan taken from designated financial institutions or upto Rs. 25 lakhs to one star, Rs. 50 lakhs to two star and Rs. 75 lakhs to three star and the heritage basic category projects which is less". It was inter alia clarified that "in the case of heritage hotels where the investment is required mainly for refurbishment of existing building, which includes creation of additional facilities and accommodation, the incentive will be available on the main loan only and not towards any additional loan".

(3.) IN Writ Petition (Civil) No. 5006 of 2010, the Petitioners heritage hotel named "Hotel Grand Haveli & Resort" at Nawalgarh, District Jhunjhunu, Rajasthan, became fully operational on 31st December 2007. The Petitioner made an application for classification on 24th January 2008. After inspection the HRACC on 23rd October 2008 granted the Petitioner the Heritage (Basic) status for a period of five years with effect from 21st October 2007. Thereafter the Petitioner made an application on 24th March 2008 for release of the capital subsidy in the sum of Rs. 90 lakhs. The MOT later issued a further order dated 18th February 2009 classifying the hotel with effect from 21st October 2007. Here again, on account of non-release of capital subsidy the Petitioner has filed the present petition.