The New Delhi Municipal Council (NDMC) is getting ready to auction the iconic Taj Mansingh Hotel, with senior officials saying that the process has been initiated.
The NDMC has been trying to auction the property, which was leased to the the Tata Group-owned Indian Hotels Co. Ltd. (IHCL) for a period of 33 years in 1976. After the lease expired in 2011, the company was granted nine extensions, but it went ahead and moved court against the auction.
On Thursday, the Supreme Court gave its go-ahead for the auction.
‘Law will take its course’
Reacting to the court’s decision, NDMC chairperson Naresh Kumar said the “law would take its own course” while refusing to comment further.
In a statement issued on Thursday, the NDMC said that it had pursued the matter “vigorously” under the supervision of Union Home Minister Rajnath Singh.
According to a senior official involved in the process of e-auction, the documents have been drawn up and NDMC officials would meet representatives of SBI Cap, the transaction advisor appointed for the auction, on Saturday to go over the modalities.
No date fixed yet
While not committing to a timeline, the NDMC said that the auction could be carried out soon. As per the Supreme Court’s order, the IHCL would have to vacate in six months if it does not win the auction.
Last year, the NDMC had begun talking to potential bidders.
According to sources, international companies also participated in a meeting in January 2016. One of their main concerns was whether they would be allowed to carry out major renovations to the building. Back then, the NDMC had decided that no changes would be allowed to the facade of the hotel.
