Tatas get six months extension to operate Taj Mansingh

Tata-owned Indian Hotels Company Limited was today given an extension of six months to operate the iconic Taj Mansingh hotel here in posh Lutyens' Bungalow Zone as the current lease will expire after two days.

"The lease to the IHCL to operate the Taj Mansingh hotel has been extended till March 31 next year," New Delhi Municipal Council chairperson Jalaj Srivastava told PTI.

The decision to extend the lease to the Tatas was taken at a meeting of the Council, a month after it sought opinion of Solicitor General Mohan Parasaran on whether IHCL should be given the first right of refusal in the auction for the hotel.

The IHCL has been operating the five star hotel for last 35 years.

Srivastava said a final decision on the issue will be taken after receiving Solicitor General's opinion as well as directives of the Union Home Ministry which is the controlling authority of the municipal body.

He said the lease is extended till March 2014 but if the Home Ministry conveys instructions with Solicitor General's opinion before it, the Council will immediately take up the issue.

The Home Ministry had routed the Council's request for Solicitor General's opinion on the vexed issue through the Law Ministry.

"If we get the opinion of the Solicitor General, we can call a special meeting within 48 hours on the matter," Srivastava said.

The opinion of the law officer was sought after there were divergent views on giving the first right of refusal to the IHCL in case auction takes place. While the Council was in favour of giving the first right of refusal, the Home Ministry was against it arguing that it may attract lower bids.

The controversy started as IHCL's lease ended in October, 2011.

The property, constructed by NDMC, was given to Indian Hotels Company Limited in 1978 on lease for 33 years. When the lease came to an end in 2011 and NDMC was about to renew the lease, the Urban Development Ministry intervened and asked it to auction the property.