Chennai Order On 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 hotels body seeking quashing of the corporations order. Under 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. 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 increase.