The New Delhi Municipal Council (NDMC) has taken a stand to auction three hotels in the capital city’s Lutyen area — The Taj Mahal Hotel, The Connaught Hotel and Hotel Asian International.
The property on which the Taj hotel stands, was given on a 33-year lease to Indian Hotels Company (IHC) by NDMC, which expired in 2011. Since then, IHC was given nine temporary extensions over a period of five years.
IHC is a subsidiary of Tata Group that owns the Taj hospitality brand.
Thereafter, NDMC committed itself to auctioning off the property, a decision that was challenged by IHC last year. However, the Delhi High Court ruled in favour of NDMC.
As for The Connaught Hotel and Hotel Asian International, their properties were sealed due to non-payment of licence fees. The Connaught Hotel has allegedly run up a debt of ₹130 crores, and Hotel Asian International, a debt of ₹56 crores.
Yesterday, a council meeting, headed by Delhi’s chief minister, Arvind Kejriwal concluded with the decision to float tenders for the auction of the three properties this month. The e-bidding will be conducted through MSTC, a central public sector unit, and SBI Capital Market is the appointed transaction advisor.
To ensure that the e-auction be carried forth in an unbiased and transparent manner, a list of parameters will be set and shared on the bidding website. This will be accessible to the public.
