TATA CLUTCHES…………..ICONIC TAJ MANSINGH HOTEL IN AUCTION

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NEW DELHI: Years of contention in courts and political intrigue has come to an end, as the Indian Hotels Company (IHCL) managed to retain Taj Mansingh hotel in a fiercely fought auction with rival ITC Hotels on 28th September.

The auction, which was conducted by the New Delhi Municipal Council (NDMC), began at 11 am and ended at 4 pm settled at a license fee of Rs 7.03 crore per month or 32.50% of the gross turnover of the property. The license fee foregoing to the e-auction was Rs 3.94 crore per month for IHCL.

“We are delighted that the iconic Taj Mahal, New Delhi, which has been an important part of the cultural and historic fabric of the National Capital, will continue to remain a part of the IHCL family. We would like to thank our customers for their enthusiastic support and our employees, who have always offered exceptional service to our guests for over 40 years”  –Puneet Chhatwal, managing director and CEO, IHCL

“It is more than 100% increase in license fee as per current market value.” an official from NDMC

After the license expired in 2011, the license was renewed nine times.

Finally, to increase revenue NDMC decided to find a new promoter cum operator through auction. This was thus challenged by Indian hotels in High court and further took the case before the Supreme Court.

The Zenith Court gave a go-ahead for the auction, turning down Indian Hotels’ plea to further raise its lease term.

The Tata group’s Indian hotels will be operating the National capital based iconic property Taj Mansingh hotel for the next 33 years.

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