Days after the New Delhi Municipal Council (NDMC) gave a three-month extension to Taj Mansingh Hotel located in its jurisdiction, the civic agency on Tuesday announced that SBI Cap has been selected as a transaction adviser for auctioning the property. “We have received in-principle approval from the council to take on board SBI Capital Markets as our transaction adviser for the auction ofTaj Mansingh. It will guide us through the entire process — from conceptualising the plan to handing it over and till the signing of the document,” Naresh Kumar, recently appointed NDMC chairperson, said.
According to NDMC officials, the last extension on the lease was given to the Indian Hotels Company Ltd. (IHCL) on January 31. It was one of six temporary extensions given to the IHCL after the expiry of the lease agreement in 2011.
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Considered to be a unique joint venture between the NDMC and the IHCL, the hotel was constructed in 1978 to house delegates of the Pacific Area Travel Association Conference. While land and construction cost was borne by the NDMC, the IHCL was responsible for operating and maintaining the hotel.
Following the expiry of the lease in 2011, a year-long extension was given to the IHCL and the NDMC had roped in a private consultant to submit a report on the issue — regarding open auction of the property and extension of the lease. This March, the NDMC had extended it a three-month extension while the civic body worked on the bidding process.
Last week, at a council meeting, the civic body decided to give another three-month extension to the Tata-backed IHCL, which runs the hotel. In 2013, the IHCL had approached the Delhi High Court, seeking a stay order on the auction of the property.