Supreme Court approves e-auction of Taj Mansingh Hotel in Delhi
The auctioning the Taj Mansingh Hotel property was stiffly opposed by Tata group-run Indian Hotels Company Ltd which manages the hotel.
The Supreme Court (SC) on 20 April 2017 approved the e-auction of Taj Mansingh Hotel in Delhi. A bench of Justices P C Ghose and R F Nariman allowed New Delhi Municipal Corporation (NDMC) to e-auction the property.
The bench rejected the claim of Tata group-owned Indian Hotels Co. Ltd (IHCL) over the property. The auctioning the Taj Mansingh Hotel property was stiffly opposed by Tata group-run Indian Hotels Company Ltd which manages the hotel.
In an earlier hearing, the Supreme Court asked NDMC to reconsider its decision for the e-auction as the IHCL had approached SC against a Delhi High Court’s ruling that allowed for the auction of Taj Mansingh Hotel.
However, on 27 October 2016 hearing, a division bench denied IHCL’s claim to right of first refusal on the auction and called for the bidding. It allowed IHCL to participate in the bid and also match the highest offer.
NDMC and IHCL had entered into an agreement in 1976 to construct and run a five-star hotel in one of the prime locations of Delhi that is Mansingh Road. This licence operated for a period of 33 years from late 1976 and concluded in 2011. However, NDMC declined to renew the IHCL licence for 30 years.