NDMC to auction restaurant in Lodhi Garden

The New Delhi Municipal Council (NDMC) has decided to lease out a Lodhi Garden restaurant afresh through e-auctioning to boost revenue.
"The restaurant is NDMC's property and was leased out at lower rates, causing revenue loss to the civic body. We have decided to conduct a fresh auction instead of renewing the licence. Given the location of the plot, we plan to set higher rates," a senior NDMC official said.
The fine dining restaurant, spread over 2,618 sq ft of covered area and 16,300 sq ft of open area, opposite Mausam Bhawan, serves European, Lebanese and Mediterranean cuisines.
The premises was rented out to Aresko Restaurant's Limited for 10 years with effect from July 5, 2003. The NDMC had decided against renewing the license beyond July 4, 2013 and to award a fresh license after auctioning the property.

The restaurant owners had then moved the Delhi High Court seeking renewal of the lease.
"Though the matter is sub-judice there is no stay on the auctioning of the restaurant. So we have decided to go ahead with an e-auction as it is a smooth and transparent procedure," the official said.

The NDMC is conducting the e-auction through MSTC Limited, a government company which is engaged in similar processes for over 30 years.
"The e-auction is likely to be opened for bidders within next week. However, companies meeting the requirement can start registering their details through the link available on the NDMC website," the official added.

The council had in June this year roped in SBICap to be its transaction advisor for the auction of the iconic Taj Mansingh hotel after its 33 year lease expired in 2011.
The Tata-owned Indian Hotels Company (IHCL) had been given seven temporary extensions since then on various grounds.