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NDMC to begin auction process for Taj Mansingh, 2 other hotels

A decision to float tenders for the auction within this month was taken at a council meeting

Press Trust of India  |  New Delhi 

Taj Mansingh Hotel, New Delhi (Source: Wikipedia)
Taj Mansingh Hotel, New Delhi (Source: Wikipedia)

The New Delhi Municipal Council (NDMC) has decided to invite bids for e-of three Lutyen's zone hotels, including the iconic Taj Mansingh, nearly six months after the civic body had given a go-ahead for it.

A decision to float tenders for the within this month was taken at a council meeting today presided over by Chief Minister Arvind Kejriwal.

"The proposal of conducting auctions of the three hotels was discussed in detail today. It was decided that the tender process will be initiated within this month. The e-will be conducted through MSTC Ltd, a central PSU, and SBI Capital Market Limited will be the transaction advisor for the auction," a senior official said.

Following a legal battle lasting over six years, the Council had given a go-ahead to an of the in March. However, modalities for the were still being worked out.

The property was given to Tata Group's Indian Hotels Company Ltd (IHCL) on a lease for 33 years, which ended in 2011. The company was since given nine temporary extensions.

After the decided to the property, the approached the The company's plea was dismissed in October 2016 and the court allowed the civic body to the property.

In November 2016, the moved the Supreme Court saying there was no need to the hotel as it was generating good revenue for the civic body. The apex court asked the to review its decision. But the civic body decided to go ahead.

The has also decided to Hotel Connaught and re-Asian Hotel after they were sealed by it in 2015 due to non-payment of license fees dues.

In January, the Asian Hotel was e-auctioned fetching Rs 45.5 lakh per month as the licence fee, the highest-ever for the agency. But, the bidder later refused to take the property necessitating a re-

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Wed, September 06 2017. 19:51 IST