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Blow to Tatas, SC allows NDMC to e-auction Taj Mansingh Hotel

Taj Mansingh

New Delhi: The Supreme Court today allowed the New Delhi Municipal Council (NDMC) to e-auction the Delhi’s iconic Taj Mahal Hotel, popularly known as Taj Mansingh, presently being run by Tata Group firm Indian Hotel Company Limited (IHCL) in the heart of national capital.

A bench comprising Justices PC Ghose and RF Nariman allowed the plea of NDMC that the Tata Group firm cannot have the right to refusal in the auctioning of the hotel.

However, the bench asked the civic body to grant six months as “breathing time” to the company for vacating the hotel if they lose out in the online auction.

The Tatas had been given a 33-year lease for the property in the prime location of the capital. The term of the contract ended in 2011.

The IHCL had told the apex court that it was “not clear” why NDMC wanted to auction the prime property which gave the “best revenue” to it.

The company had submitted that NDMC expert report suggests that the council would “lose revenue” if the hotel was auctioned to other players.

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