Taj Hotels has managed to buy more time as, in a u-turn from its earlier stance, the New Delhi Municipal Corporation (NDMC) has decided against finalising the terms and conditions for the Taj Mansingh hotel auction.
The Council, meeting on Wednesday, decided to wait till the next court verdict on July 18. The Council is also expected to convene a special meeting in a week to reconsider its decision to invite bids for the property.
On Tuesday, the Delhi High Court had asked NDMC to file its reply to Taj Hotel’s injunction suit. The Court had not restricted the civic body from inviting bids but had also said it cannot dispossess Taj of the property till the verdict is finalised.
NDMC officials had said that as there is no stay on the auction process it will go ahead with its scheduled meeting on Wednesday and can proceed with finalising the “Request of Proposal”. Finalising the terms and conditions that had suggested Rs 36 crore as the minimum bid price for the license fee is on the agenda for Wednesday’s meeting.
Lease extension
The officials also said NDMC could now look at extension of its lease agreement, just as Delhi Development Authority had decided to extend the lease of Taj Group’s other hotel in New Delhi, the Taj Palace.
Indian Hotels Company, in its plea, stated that the agreement with NDMC was a joint venture and in view of the long-term relationship between them, the matter should be reconsidered.
Taj’s 33-year lease with NDMC had ended in 2011 and was extended twice. NDMC had also earlier decided to conduct an auction to get a fair value of the property and increase its revenues. Taj Hotels’ second lease extension ends in October.