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The Delhi High Court today dismissed 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 NDMC.

The verdict was pronounced by a bench of Justices S Ravindra Bhat and A K Chawla.

The court had reserved its arguments on May 3 after hearing arguments of the counsel for the IHCL and New Delhi Municipal Council (NDMC) which had claimed that it had not prejudiced Tatas in any way.

The apex court had on April 20 last year allowed the civic agency to e-auction five-star hotel Taj Mansingh, currently being run by Tata Group firm IHCL, in the heart of the national capital.

The Tatas had moved the division bench of the high court against the September 5, 2016, judgement of a single judge who had not acceded to the firm’s request for renewal of licence for a further period, saying it was not entitled for the extension.

The IHCL had 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.

The property, owned by the NDMC, was given to the IHCL on a lease of 33 years. The lease had ended in 2011 and the company was given nine temporary extensions since then on various grounds, with three of them granted last year itself.

The NDMC had announced the e-auction of its premium hotels in Lutyen’s Delhi Taj Mansingh, The Connaught and Hotel Asian International for a period of 33 years.


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