After two failed Auctions, Tata Group retains iconic Taj Mansingh Hotel for Double the License Fees

September 28,2018:

On Friday, National Capital Delhi's Iconic Taj Mansingh Hotel was finally retained by Tata Group after two failed Auctions by New Delhi Municipal Council (NDMC).

Auction was pending since the lease expired in 2011.

Lease for the property will be granted to the group for 33 years at double the license fees.

Senior NDMC Official stated that,“The Tata group’s Indian Hotels Company Limited (IHCL) has retained the property at a license fees of Rs 7.03 crore per month including GST. Earlier, they were paying Rs 3.94 crore per month as license fees”.

Other bidder in the auction was the ITC group of hotels.

Failing to auction luxury hotel in two attempts, NDMC had last month decided to relax eligibility criteria for bidders and reduce the minimum number of bids required.

Auction had to be put off twice as it got less than required number of the bids for Five-star property to go for the Auction.

Earlier, Civic Body had issued an Annulment Notice for E-Auction in June when it had to be cancelled as only IHCL the existing operator had submitted its bid for retaining the property.

Taj Mansingh was given to Tata Group in 1978 on a lease for 33 years, which ended in 2011. The company was since given nine temporary extensions.

Source HT