It's official: Tatas get 6 more months to operate Taj Mansingh

The New Delhi Municipal Council (NDMC) on Monday gave the Tata-owned Indian Hotels Company (IHCL) another extension of six months (till March 31, 2014) to operate the Taj Mahal hotel in the capital’s tony locality Mansingh Road.However, the auction of the property hinges on the Solicitor-General’s opinion on the right of first refusal (ROFR).

According to reports, the auction process will kick off after the home ministry gives the instructions and forwards SG’s opinion to NDMC.

Besides, the auctions may also become difficult immediately as the State goes for polls on December 4 and will be governed by the Election Commission’s code of conduct.

The one-year extension given to IHCL last year was to expire on October 10.This is the third extension that Taj has got since its 33-year lease for the iconic hotel expired in October 2011

The council is waiting for the solicitor general’s opinion on the modalities of the auction to find a new operator.

But it could not do so because the IHCL moved the Delhi high court.

As time was running out, the NDMC gave a year’s extensionto IHCL. While the company expected the lease to be renewed inOctober 2012, the process was stalled temporarily as NDMCcould not take a final call.

The agency had then decided to give one-year extension tothe Tatas, besides giving the first right of refusal in anauction to be conducted within one year.

After the NDMC decided to auction the property, the IHCLapproached the Delhi High Court seeking a stay on the process.Though the Tata group company had not got a stay order fromthe court, it did get an assurance that if NDMC takes stepsfor vacating the premises, the company could take legalrecourse.

When the Home Ministry asked the NDMC not to give IHCLthe first right of refusal while auctioning the property, thecivic body went to the Solicitor General to seek opinionon it, an action which annoyed the Ministry.

It had then issued a show cause notice to NDMC asking whythere has been a “delay” in auction of the hotel.However, the Ministry later asked NDMC to approach the

Solicitor General on its own. But the file was again sent backas according to the Law Ministry, it had to come through thethe Home Ministry. The file belonging to the matter was thensent by the Home Ministry to the Law Ministry to be forwardedto the Solicitor General.

“There are three ministries involved – the HomeMinistry, Urban Ministry and now the Law Ministry. I don’tthink there is any room for delay. I am hoping, we will

receive the SG’s opinion and the MHA’s instructions on thematter soon,” Srivastava said.

The property, constructed by NDMC, was leased out to IHCL in 1978 on a 33-year lease. When the lease came to an end in 2011, the NDMC was about to renew it but the Urban Development Ministry intervened and demanded that the property be auctioned.

With inputs from PTI