 "NMDC to discuss Taj Mansingh auction on May 23")
New Delhi Municipal Council (NDMC) will have its next council meeting on May 23, when members are likely to discuss the Taj Mansingh property auction.
In the last council meeting on April 10, it was decided that a special meeting would be convened to deliberate on the auction process of the luxury hotel property.
In the previous meeting, NDMC had deferred the discussion on this subject till it got the copy of the High Court order on the stay sought by Indian Hotels Company (IHCL) on the auction of the Taj Mahal hotel.
IHCL had filed an injunction suit in the High Court seeking a stay on the auction of the iconic hotel in Delhi after its two year lease extension comes to an end in October 2013.
The matter will come up for hearing in the High Court on July 18.
The 33 year lease agreement ended in October 2011, post which NDMC decided to go for an auction instead of renewing the lease of IHCL. Thereafter the civic body had given one year lease extension to the company.
IHCL, in its plea to the High Court, said that it has equity in the property and hence cannot be treated as any other lessee. Indian Hotels, in its plea, has cited its long relationship with NDMC to grant a stay on the auction process.
It has also said that the company shares its revenue with NDMC as rent every year for managing the property built on NDMC’s land. Indian Hotels said that it had a right to seek an extension of the lease because it "built a permanent structure" and invested in development of the area.
NDMC has filed its affidavit in the court as well. The Council has stated that in the event of an auction the first right of refusal would be given to IHCL.
In the last council meeting on April 10, it was decided that a special meeting would be convened to deliberate on the auction process of the luxury hotel property.
In the previous meeting, NDMC had deferred the discussion on this subject till it got the copy of the High Court order on the stay sought by Indian Hotels Company (IHCL) on the auction of the Taj Mahal hotel.
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While the formal agenda of the meeting to be held later this month is yet to be fixed, the Taj discussion is expected to come up in the minutes of the meetings.
IHCL had filed an injunction suit in the High Court seeking a stay on the auction of the iconic hotel in Delhi after its two year lease extension comes to an end in October 2013.
The matter will come up for hearing in the High Court on July 18.
The 33 year lease agreement ended in October 2011, post which NDMC decided to go for an auction instead of renewing the lease of IHCL. Thereafter the civic body had given one year lease extension to the company.
IHCL, in its plea to the High Court, said that it has equity in the property and hence cannot be treated as any other lessee. Indian Hotels, in its plea, has cited its long relationship with NDMC to grant a stay on the auction process.
It has also said that the company shares its revenue with NDMC as rent every year for managing the property built on NDMC’s land. Indian Hotels said that it had a right to seek an extension of the lease because it "built a permanent structure" and invested in development of the area.
NDMC has filed its affidavit in the court as well. The Council has stated that in the event of an auction the first right of refusal would be given to IHCL.