Mysuru:  The Lalitha Mahal Palace Hotel in city, hitherto run by the India Tourism Development Corporation (ITDC), has been handed over to Karnataka Government. This decision had been taken as per the disinvestment policy of the Government of India last year.

Lalitha Mahal, the second largest Palace in city, had been leased to the ITDC by the State Government in 1973.

The handing over formality was completed in Bengaluru yesterday between the officials of ITDC and State Government. The Hotel is likely to be handed over to Jungle Lodges and Resorts, a unit of the KSTDC.

As part of the disinvestment exercise, the Centre decided to exit three ITDC hotels, including Lalitha Mahal Palace, Mysuru, and hand over them to the State Governments.

An order was issued on Feb.7 by the Union Government to ITDC regarding the transfer of the hotel and subsequently, the State Government and ITDC signed a Memorandum of Understanding (MoU) to this end.

Sources said that as part of the agreement, the State Government has to pay nearly Rs.7.45 crore to ITDC and then the Jungle Lodges and Resorts will take over. In 1973, the Lalitha Mahal Palace was handed over to the ITDC from the Public Works Department (PWD) and was opened to public in 1974. Nearly 44 years after that, once again, the hotel is going back to the State government.