NDMC gets nod to seek Solicitor General's opinion on auction

Home Ministry has given a go ahead to the New Delhi Municipal Council for seeking opinion of Solicitor General Mohan Parasaran on the issue of auctioning of the Taj Mansingh hotel.
NDMC chairperson Jalaj Srivastava said the Home Ministry conveyed to the civic agency yesterday that it can approach the Solicitor General on taking a legal opinion on the issue.
The civic body had in June written to the Home Ministry requesting it to seek Solicitor General's opinion on auctioning the five star hotel in posh Lutyens Bungalow Zone.
"According to the provisions, we are supposed to seek the Solicitor General's opinion via the MHA. We were waiting for the ministry's response on the matter," said Srivastava.

He said NDMC yesterday got a letter from the ministry which said it has "no objection for referring the matter to the solicitor general" by NDMC itself.
The hotel has been caught in a controversy since its lease ended in October 2011. Tata's Indian Hotels Company Ltd (IHCL) had entered into a 33-year lease agreement with NDMC for using the Taj Mansingh Hotel property in 1978, which ended in October 2011. The lease has been extended twice since then.

In September last year, the municipal body had decided to give one-year extension to the Tatas, besides giving the first right of refusal in an auction to be conducted within one year.

The Home Ministry had issued a show cause notice to NDMC asking why there has been a "delay" in auction of the hotel. Sources said the Home Ministry was also concerned that the "provision of the first right of refusal will result in a lower bid in the public auction".
The ministry's approval to NDMC for seeking solicitor general's opinion came after two letters written by the NDMC chairperson on the issue.
"One letter was sent on August 29, followed up with another on September 3. We wanted to have a reply before today's meeting," said Srivastava.
"Most probably, the opinion from the solicitor general will be sought by Friday," said Srivastava, adding, there has been a two-months delay in the matter already and he wants to speed up the process.