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The New Delhi Municipal Council (NDMC) has set a three-month deadline to complete the auction of the Taj Mahal hotel, popularly called as Taj Mansingh. The decision, taken on Wednesday, means the hotel's lease, to expire on March 31, will run till June 30.
"The Taj Mansingh matter was discussed by the council, which has asked me to complete the auction within three months. Taj Mansingh has been given an extension to continue operations till then," said NDMC Chairperson Jalaj Srivastava.
Sources said the auction could take longer and another extension of the lease was possible.
NDMC has received a go-ahead from the home affairs ministry for an open auction. India Hotels Company, which operates the property, will not have the first right of refusal. A consultant will be hired to help NDMC with the auction. The previous consultant, EY, had pulled out after its contract expired two months ago.
India Hotels Company had a 33-year lease for managing the property owned by NDMC that expired in October 2011. The lease has been extended six times, the latest on January 31. India Hotels Company had filed an injunction in the Delhi High Court to stay the auction, claiming equity in the hotel's construction.
