Le Meridien hotel clears Rs 150-cr licence fee dues to NDMC

Ending a long-standing tussle with the New Delhi Municipal Council (NDMC), hotel Le Meridien today cleared licence fee dues over Rs 150 crore.
"We received four cheques today from CJ International Hotels Ltd amounting to Rs 150.92 crore towards licence fee arrears in respect of Hotel Le Meridien. We would also be adjusting Rs 29.50 crore paid by them during the financial year 2014-15. Hence, the total amount recovered during the year is Rs 180.42 crore," NDMC Chairman Jalaj Srivastava told PTI.
"As per the orders of Justice SK Mahajan, we had recalculated the arrears of licence fee amounting to Rs 150.92 crore. We had sent them a letter earlier this month asking them to clear the dues by March 31 and they have done so without any 'unpleasantness'," he said, adding, "I wish all other residents and commercial property holders in the NDMC area follow their example and work towards early disposal of dues and arrears."

Sharing details of the licence-fees row, Himanshu Ranjan, Deputy Director, NDMC (Estates) said, "NDMC had signed a licence deed with the hotel in 1981 and the hotel started operating in 1987. As per the deed, they were supposed to pay 21 per cent of the gross turnover to NDMC, but they later moved court saying the amount being charged was atrocious.
"Delhi High Court had ruled that they are liable to pay 21 per cent but the definition of gross turnover needs to be revised and should exempt taxes or income generated from sources other than the hotel. They later challenged the plea before a double bench, which upheld the judgement," he added.

In a communication sent to the civic agency, Harjit Kaur, Chairperson and MD, CJ International Hotels Ltd, today said, "With a view to bringing an end to the pending litigations consistent with the proposed actions set out, we accord our acceptance to the calculation towards licence fees arrears arrived at by you.
"Please note that our acceptance of your request underscores our commitment to bringing an end to the pending litigation concerning licence fee.