No Supreme Court relief for Tatas in Taj Mansingh auction case

The Supreme Court on Friday declined to grant relief to Tata-owned Indian Hotels Company Ltd (IHCL), which challenged the order of the Delhi High Court allowing auction of the prestigious Mansingh luxury hotel located in the heart of the capital. 

After short arguments, the Tata firm withdrew its appeal. The court allowed the company to approach it after the auction in case of any grievance. 

Commenting on the issue IHCL said, “We have withdrawn the special leave petition before the Hon’ble Supreme Court as the Hon’ble Court was not inclined at this point to intervene in the ongoing tender process for the licensing rights of Taj Mansingh. We reiterate that the Hon’ble Supreme Court, in its order dated April 20, 2017, recorded that the unblemished track record of Indian Hotels and its capabilities would have to be taken into account by NDMC while taking a final decision; and that NDMC also stated before the Delhi High Court that the Supreme Court order was to be one of the factors which would be taken into account while evaluating the bids. We remain confident of our credentials and convinced that our continued partnership with NDMC will ensure the success of this iconic hotel.”

Indian Hotels counsel A M Singhvi submitted before the vacation bench consisting of Justice L Nageswara Rao and Justice MM Shantanagouder that it was running the hotel for 40 years without any complaint and had paid Rs 4.6 billion in lease. It had also spent Rs 2 billion in capital expenditure. The Supreme Court had allowed e-auction of the 300-room hotel last April but the company argued that the procedure set by NDMC violated the court order. The hotel moved the high court, but on May 22, it allowed the auction to go on. The 33-year lease of the hotel had expired in 2011.