The Delhi High Court has reserved its order on a plea by Tata Group-owned Indian Hotels Company Ltd. (IHCL), challenging the tender procedure of the proposed auction of Delhi’s Taj Mahal Hotel by the New Delhi Municipal Council (NDMC).
The Supreme Court had on April 20 last year allowed the civic agency to e-auction the five-star hotel, currently being run by Tata Group firm IHCL.
IHCL has submitted in the court that the NDMC has failed to consider the last year’s order of the Supreme Court that they had an unblemished track record.
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‘Stood to loose money’
It also questioned the revenue sharing model in the tender document prepared by NDMC and argued that the civic agency stood to lose money if the auction went through.
Senior advocate Sanjay Jain, appearing for NDMC, said they have considered the track record of IHCL and that is why they have not put any condition on them, whereas several conditions were there in case of the other bidders.
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Mr. Jain said it was the NDMC’s prerogative to decide the tender conditions and the civic body was not discriminating with anyone as everyone was equal.
The property, owned by the NDMC, was given to the IHCL on a lease of 33 years.
Lease ended in 2011
The lease had ended in 2011 and the company was given nine temporary extensions since then on various grounds.