 "Indian Hotels challenges court order on Taj Mansingh auction")
Indian Hotels Company, the operator of Delhi’s iconic Taj Mansingh hotel, has challenged the single-judge order of Delhi High Court that allowed auctioning the property and declined requests to renew the operator’s licence. The company’s stock is unaffected by the order and has gained over 6% in trade.
“The Indian Hotels Company will vigorously protect its interests in the Taj Mahal Hotel, New Delhi, and will pursue all legal options. We have today filed an appeal in the Delhi High Court against the order of the Ld. Single Judge, seeking intervention of the Division Bench in this matter. The Taj Mahal Hotel is an iconic hotel that has served the city of Delhi for more than 35 years. We are committed to our guests, employees and partners and remain invested in the future of the Hotel,” said a Taj spokesperson.
The BSE listed company opened in the green and gained 4 per cent in trade. At 3.06 pm, the stock was trading at Rs 133.80, up over 6 per cent to the previous close. Taj Mahal, also known as Taj Mansingh Hotel, is a 294 room property, located in Lutyens’ Delhi. It is a key asset operated by the company and is estimated to bring annual revenues of Rs 150 crore.
The Tata group company was seeking a renewal of licence on grounds of the equity investment it had made in the property. The initial cost incurred by the company before the hotel became operational in 1978 was Rs 4.61 crore. Additional investments would have gone to modernise the property.
Indian Hotels had got the property on lease from New Delhi Municipal Corporation (NDMC) for 33 years. The lease ended in 2011 and saw seven extensions on various grounds. The current extension is valid till September 30. However, the auction process may take much longer. NMDC has roped in SBI Cap, a subsidiary of SBI as the transaction advisor for the auction.
