UPDATE: Himalayan Ski Village Delay Costly for State Government

photo credit: Himalyan Ski Village Private Ltd.

Ski, Esq. readers may recall a story we published two weeks ago discussing an Indian judge's ruling which will permit the development of a large, posh ski resort in the Himalayas to proceed. In the wake of the decision new details are emerging about just how much the delay has cost the local government.

The New York Daily News is reporting hat the delay caused by the provincial government's obstruction is costing the province somewhere between $5-9M in tax revenue each year. The full story can be found here. 

The problems faced by ski resorts seeking to develop or expand is not unique to the Indian subcontinent. North American and European resorts face a plethora of regulatory and political challenges. However, if a lesson can be drawn from the Himalayan Ski Village project, it is that once a government has given approval to a development and those rights have vested it is -- and should be -- quite difficult for that government to reverse course. Developers have a right to rely on approvals from and representations made by governments. Changes in the political winds should not affect vested rights.

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