NDMC auctions Hotel Asia International at 15 times its current lease value

The New Delhi Municipal Council (NDMC) has auctioned its three-star property in central Delhi's Janpath lane — Hotel Asia International — for an amount 15 times more than the current lease rate for space.

The auction process for the property, which was sealed by the NDMC in February 2015 over unpaid licence fee of Rs 56 crore, concluded last week.

"The auction fetched us Rs 45.48 lakh per month," a senior NDMC official told PTI.

It is more than 15 times the current lease amount of Rs 3 lakh per month.

NDMC had taken possession of it in June 2015 after the hotel authorities failed to abide by the eviction order on the expiry of its lease.

"We had issued them an eviction order as their lease had expired long back. They were occupying the premises in an unauthorised manner. When they failed to do so, we sealed the hotel and took possession of it," the official said.

"Fifteen bidders had registered for the e-auction, the reserve price for which was set at Rs 9.68 lakh per month," he said.

The civic body had last year decided to auction the property with an area of 612.4 square metres. However, the reserve price was changed time and again as the process continued.

It was first suggested it would be rented out for a Request for Proposal of Rs 61.88 lakh per month.

With no takers coming forward for the auction, the figure was brought down to Rs 28.73 lakh and then to just Rs 14.40 lakh, raising eyebrows that the decision was taken to favour a particular hospitality company.