 "Tatas get to operate iconic Taj Mansingh hotel for another six months")
Tata-owned Indian Hotels CompanyLimited has been given an extension of six months by New DelhiMunicipal Council to operate the iconic Taj Mansingh hotel inthe posh Lutyens’ Bungalow Zone in New Delhi.
The current lease of the hotel expires on July 31.The decision was taken in a council meeting yesterday,NDMC chairperson Jalaj Shrivastava said.He said NDMC extended the lease as it has not receivedany guidelines in this regard from the Union Home Ministry,which is the governing authority of the municipal body.
This is the fifth time IHCL has got an extension tooperate the hotel by NDMC, which is the land-owning agency.
The civic agency had earlier extended the lease by fourmonths in March this year.
“We have not received any response from the SolicitorGeneral till date. The response has to come via the Union HomeMinistry. We have no option but to extend the lease,“Shrivastava said.
The opinion of the Solicitor General was sought afterthere were divergent views on giving the first right of
refusal to IHCL in case an auction takes place.While the Council was in favour of giving the first rightof refusal to IHCL, the Home Ministry was against it, arguingthat it may attract lower bids.
When the Home Ministry asked NDMC not to give IHCL thefirst right of refusal, the civic body approached the
Solicitor General for his opinion.Srivastava said a final decision on the issue will betaken after receiving the Solicitor General’s opinion as wellas directives of the Union Home Ministry.
The property, constructed by NDMC, was given to IndianHotels Company Limited in 1978 on lease for 33 years.
The controversy started in 2011 when the lease ended.The civic agency was set to renew it, but had to postponethe matter as the Union Urban Development Ministry suggestedauctioning of the property.
PTI
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