The New Delhi Municipal Council (NDMC) is likely to discuss the Taj Mahal hotel property auction during its next council meeting on May 23, sources said.
In the previous meeting on April 10, it was decided to reconvene to deliberate on the auction process of the luxury property. NDMC had deferred discussion on this subject, as it wanted a copy of the Delhi High Court order on the stay sought by Indian Hotels Company (IHCL) on the auction.
While the formal agenda of the meeting to be held later this month is yet to be fixed, discussion on the property is expected to be held, sources said.
IHCL had filed an injunction suit in the high court, seeking a stay on the auction of the iconic hotel, popularly called the Taj Mansingh, after its two-year lease extension comes to an end in October 2013.
The matter would come up for hearing in the high court on July 18.
The 33-year lease agreement ended in October 2011, after which NDMC decided to go for an auction, instead of renewing the lease of IHCL. Thereafter, it gave a one-year lease extension to the company.
IHCL, in its plea to the high court, said it had equity in the property and, hence, could not be treated as any other lessee. It has cited its long relationship with NDMC to get a stay on the auction process. It has also said the company shares its revenue with NDMC as rent every year for managing the property built on NDMC's land. Indian Hotels said 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 in the event of an auction, the first right of refusal would be given to IHCL
