Delhi’s iconic Taj Mansingh hotel will go under the hammer as the Supreme Court on Thursday morning allowed the New Delhi Municipal Corporation (NDMC) to auction the property located at the prime location of 1, Man Singh Road in Lutyens’ Delhi.
The apex court has allowed the civic agency to e-auction the five-star hotel, currently being run by Tata Group firm Indian Hotels Company Ltd (IHCL).
A bench comprising Justices PC Ghose and RF Nariman allowed the plea of NDMC that the Tata Group firm cannot have the right to refusal in the auctioning of the hotel.
Taj Mansingh to be auctioned by NDMC as SC allows it to do so. E-auction to take place @htTweets— bhadra sinha (@BhadraSinha) April 20, 2017
The civic body had on March 3 told the apex court that it wants to e-auction the hotel. The court had earlier asked the IHCL, which challenged a Delhi High Court order allowing auction of the hotel, to file objections, if any, within a week.
The IHCL had told the apex court that it was “not clear” why NDMC wanted to auction the prime property which gave the “best revenue” to it.
The property, owned by NDMC, was given to IHCL on a lease of 33 years, which ended in 2011. Nine temporary extensions were given to the company on various grounds with three of them granted last year itself.
The company had on November 8 approached the apex court against the high court order clearing the auction. A single-judge bench of the HC had on September 5 dismissed IHCL’s plea saying the company has “no right” for renewal of the licence period and the NDMC was “within its power” to secure maximum consideration for grant of licence for the property.
IHCL had then moved the division bench of high court, but lost again.