UNPAID DUES BY THE GOVT. PUSH POONA HOTELIERS INTO THE RED, SOME HOTELS MAY SHUT IF DUES NOT CLEARED

HRAWI & PHA In Talks With The Collector’s Office For Expediting Payments Owed To Hotels Requisitioned for Quarantine Purposes

Pune, 09 Sept: Several hotels were requisitioned by the State for the purpose of quarantine and accommodation to Doctors and other Health staff from the month of April 2020. Hoteliers stated that sometime in mid-April, authorities demanded they open hotels for quarantining purposes and assured fair compensation against the services provided. Knowing the extent of the pandemic and the support required for medical service workers, hotels agreed and offered their rooms and staff to the Government. Hotels spent on staff salaries, electricity bills, utilities and maintenance, among other overheads from their own pockets.

The Hotel and Restaurant Association of Western India (HRAWI) and The Poona Hoteliers Association (PHA) have been following up with the Collector’s office for over three months but have received no confirmation on the status of the payments owed to hotels.

“We did what the Government asked us to do. Hotels were requisitioned for the purposes of accommodating Health workers and Doctors and were promised compensation against the services provided, but we are still waiting for it. Hotel staff risked their lives to serve those who were quarantined in their hotels during the lockdown. It is unfortunate that the Government now chooses to ignore us,” says Mr Gurbaxish Singh Kohli, President, HRAWI.

HRAWI is the apex body of Hotels and Restaurants in the Western region that covers Maharashtra, Gujarat, Madhya Pradesh, Chhattisgarh, Goa and the Union Territories of Daman, Diu & Silvassa. The Association is considered to be the voice of the Hotel and Restaurant Industry.

“It is unfortunate that the Hotels have to bear the brunt of a decision that they made in good faith. Hotels were made to open and carry out operations by the State when they actually were closed. They have incurred expenses which they wouldn’t have if they were to remain shut. Now hotels are receiving electricity bills with penalties for not paying on time. Many such hotels are on the verge of filing for bankruptcy. We have been pleading with the authorities to disburse the dues owed or else the many more hotels will go bankrupt. In fact, one of the hoteliers has already filed a petition in the High Court and others may follow suit,” says Mr Sharan Shetty, President, PHA.

HRAWI has made several representations to the Government and concerned authorities requesting them to release the payments. The Association has echoed the sentiment of the PHA and has stated that the Government should not have made false promises. It added that if hotels were to continue to remain closed during lockdown, at least they would not have incurred additional expenses.

One such hotelier in the city has expressed anguish about the lack of empathy shown by the Government officials. The hotelier has stated that they had refused to open their hotel citing the threat of the pandemic and risk to their staff. But on the insistence of the authorities, he caved and let the hotel to the Government for quarantine purposes. Now when, most hotels are re-opening, with no working capital left, he has had to close down his hotel.

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