Order Hiking Licence Fees For Star Hotels Stayed

The Madras high court has stayed for four weeks, an order of the Chennai city corporation announcing a hike in licence fees ranging between Rs 15,000 and Rs 75,000 for star hotels.

Staying the corporations December 5 last order, justice C Shivappa also directed that notice be issued to the corporation and the secretary for municiapal administration on a petition filed by the president of South India Hotels and Resturants Association, K Balakrishna Rao, seeking quashing of the corporations order and a stay on its operation.

According to the order, star hotels, now paying a flat rate of Rs 6000 annually as licence fee, would be required to pay a minimum of Rs 15,000 and multiples thereof for each star. Hotels would be required to pay the new fee retrospectively for 1997-98. The price charged by star hotels for tea and other items was the only reason given for the manifold increase, the petitioner contended and said such hotels were not given an opportunity to be heard before the hike was effected.