Tatas challenge NDMC bid to auction Taj Mansingh hotel

The New Delhi Municipal Council has decided to cancel the licence of Le Meridien hotel and e-auction the Taj Mansingh hotel. Indian Hotels Company Limited (IHCL) has objected to the NDMC decision in Supreme Court. Both are iconic five-star hotel properties in Delhi.

The Tata-run Indian Hotels Company Limited (IHCL) will challenge the New Delhi Municipal Council’s (NDMC) decision to e-auction the iconic five-star Taj Mansingh Hotel.

The New Delhi Municipal Council owns Hotel Taj Mansingh. The property, owned by NDMC, was given to IHCL on a lease of 33 years, which ended in 2011. (HT Photo)

Senior advocate Rajiv Nayyar, appearing for IHCL, told a bench headed by Justice PC Ghose that his client had serious objection to NDMC’s decision and would file objections against it soon.

Read: NDMC cancels Le Meridien’s licence, reaffirms decision to auction Taj Mansingh

The bench fixed March 22 to hear IHCL’s petition, saying its licence to run the hotel should be renewed.

NDMC counsel, additional solicitor general Sanjay Jain told the court that e-auction would provide equal opportunity to IHCL to bid for the hotel. He said the auction would be live and transparent. IHCL would know which company is bidding for how much. “Accordingly, they can also place their bid,” he said.

However, the court said it wanted to hear IHCL on the NDMC’s proposal and adjourned the matter. On IHCL’s plea, the top court had in November last year directed NDMC to maintain status quo.

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.