HC seeks personal appearance of Under Secy GoI

Excelsior Correspondent
SRINAGAR, Dec 15: High Court has sought personal appearance of the Under Secretary, Department of Tourism, Government of India in a case filed by the Hotel and Guest House Owners seeking benefits of a scheme for special package to the units engaged in the Tourism Industry in Kashmir.
It has been held that in 2003, a notification was issued for the purpose of creating employment through reviving the tourism industry in Jammu and Kashmir, more particularly in Kashmir Valley. The object of the Scheme was to provide a special package to the Units engaged in the Tourism Industry in Kashmir in order to encourage revival of the entire Industry, which otherwise was adversely affected due to the ongoing turmoil.
As a result of which Government of India, Department of Tourism by virtue of this Notification announced a Special Package for creation of employment by reviving tourism in the State. The special package was meant to cover various Industrial Units including the ones in the form of Hotels and Guest Houses as well.
In terms of the Scheme and the guidelines a soft loan of Rs.50,000 per room for renovating and refurbishing 50% of the rooms of A,B, C and D Category Hotels came to be sanctioned and out of the total number of rooms existing in all category of Hotels, a soft loan was granted to renovate and refurbish 50% of the rooms @ Rs. 50,000/- per room.
“In the interest of justice, one more opportunity is granted to respondent-4 to file reply. In case, reply is not filed by the next date of hearing, respondent No. 4 (Under Secretary, Department of Tourism, GoI shall remain present in person on the next date hearing”, Court directed.
The Scheme also indicates that a Package for Hotels and Guest Houses was to be implemented in accordance with the framed guidelines. The funds were required to be released to the Banks through the State Government and the interest burden worked out between the Party was only 4%. The rest of the interest of around 7% was to be paid by the State as a subsidy in terms of the Scheme.
The Hotel and Guest House Owners are seeking benefit of the Scheme in view of them being eligible to avail said benefits and consequently were accepted as the beneficiaries and were accordingly sanctioned with the loan amount according to their respective claims.
They submit that after the amount came to be sanctioned in their favour in view of the applicability of the Scheme, the said amount was utilized by all of them for renovation and refurbishing of 50% of the rooms existing in their respective Hotels/Guest Houses.
“Since the entire amount was utilized and was released in favour of them by the respective banks, therefore, as a collateral security their business establishments against which the loans were availed were mortgaged by the Bank as such are required to pay their share of 4% interest against the sanctioned loan to the Bank and in view of the guidelines of the Scheme the rest 7% interest was to be shared by the Government of J&K as a subsidy granted by Under Secretary to Tourism Department GoI “, reads the plea.