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Indian Hotels Company (IHC), the Tata Group-led hospitality chain, is open to putting a bid to retain its hold over the Delhi-based luxury property located at Mansingh Road. The Union government has given a green signal to the New Delhi Municipal Council (NDMC), on whose land it is sited, for auctioning the Tata-operated property — called Taj Mahal formally but popularly known as Taj Mansingh.
NDMC owns the property and it was given on lease to IHC for 33 years. The lease ended in 2011 and saw seven extensions on various grounds. The current extension expires on June 30 and the auction is expected to be completed by then.
Rakesh Sarna, managing director and chief executive, IHC, said: "We have documentation that goes back 33 years. The matter is now sub judice (referring to their moving court to insist they be allowed to continue). It is a matter of grave concern to us — that property is very important to us."
Last year, in the wake of the stalemate between IHC and NDMC, Attorney General Mukul Rohatgi had (as had Solicitor General Mohan Parasaran) suggested negotiation for renewal of lease was a better option than an outright auction.
Asked if IHC would be putting in a bid to save the property, Sarna said, \"Obviously, yes, but it depends on which hammer it goes under. Is it right of first refusal, is it open (or) is it a capped bid? We feel very strongly about what we have said in the past few years. The Attorney General and Solicitor General has said it. We will do everything in the spirit of the overall health of the company.\"
IHC had earlier petitioned the high court here to get a stay on the proposed auction, claiming equity in the hotel property's construction. However the court declined to stay the auction.
"The court had asked, come back to us when you are threatened. So, now that we are informed officially, we will look into it," Sarna added.
In the central portion of this city, the property has 294 rooms, including 27 suites. The Union home ministry, which oversees NDMC, had ordered an open auction to attract domestic and global bidders, to generate higher bid values. According to estimates, the property contributes in excess of Rs 150 crore to the revenue of IHC in a year.
Sarna was also quick to state that "...in the world of our total portfolio, there are many things that we need to celebrate and build upon than to only focus on this property".
