Haridwar: The city municipal corporation is bearing a loss of Rs 2-2.5 lakhs every year as it has failed to charge the hotel owners for not renewing their hotel licenses.

About 25 percent of the hotels in the city have not paid the license fee since years. However, with the end of financial year approaching in March, the corporation is planning to issue notices and file court cases against such hotels.

With continuous flow of tourists throughout the year, the hotel business is flourishing in the city. 25 percent of the 302 registered hotels have not renewed their licenses since years. Moreover, 65 hotels and lounges are running without licenses due to which the municipal corporation is bearing an annual loss of Rs 2-2.5 lakh.

It is to be noted, even the Rahi Motel of the Uttarakhand government is not registered under the corporation and has been running without license for many years.

Under section 29 of the UP Municipalities Act, 1916, there is a fine of Rs 1000 on non-renewed license. Also on repeated failure to renew the license, the fine can be raised to Rs 25 per day.

Haridwar Hotel Association Chairman Ashutosh Sharma said, “Most of the hotel owners are unaware about renewing the licenses. If the city corporation gives us a list of such hotels, we will cooperate in this regard.”