Delhi HC rejects Indian Hotels plea to stay Taj Mansingh auction

New Delhi Municipal Corporation owns the land and had leased it out to Indian Hotels in 1976 for a 33-year period

The Delhi High Court has rejected the plea by Indian Hotels to stay auction of Taj Mansingh, a news channel reported.

Indian Hotels, part of the Tata Group, had filed an injunction suit against New Delhi Municipal Corporation (NDMC) as the latter had proposed auctioning the property on which the iconic Taj Mansingh hotel is built. The corporation owns the land and had leased it out to Indian Hotels in 1976 for a 33-year period.

The lease of the hotel land ended in October 2011 but was extended by a year. The two follow revenue-sharing model for the property. In the suit, Indian Hotels said that NDMC and the company has a joint-venture based on revenue-share and has a right to seek an extension of the lease.

In case NDMC goes ahead with the auction of the land, Indian Hotels would have to match the highest bidder in order to continue operating the hotel.