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This is an archive article published on March 16, 2011

After getting back Shehnai,eatery,MCD plans to float tenders again

The cash-strapped MCD will soon be adding lakhs of rupees to its coffers by licensing out its sealed properties — the Shehnai Banquet Hall on Aruna Asaf Ali Road and Cups And Saucers restaurant on Minto Road.

The cash-strapped MCD will soon be adding lakhs of rupees to its coffers by licensing out its sealed properties — the Shehnai Banquet Hall on Aruna Asaf Ali Road and Cups And Saucers restaurant on Minto Road. Both the properties were in the midst of a legal tussle after alleged land grabbers tried to acquire them.

The Shehnai Banquet Hall,located opposite Lok Nayak Hospital,would soon start hosting functions again. Though the MCD had nearly lost it four years ago,after the licensee laid ownership claim on it,a High Court verdict delivered the hall back to the civic body.

The civic body will soon come up with a new advertisement,inviting tenders for the banquet hall,and it expects to earn as much as Rs 12 lakh from it annually.

The Shehnai controversy arose after it was licensed to a licensee for five years in 2002. After the licence expired in February 2007,the licensee converted the property into a lease hold without informing the Commissioner,as is mandatory in such cases. Later that year,it tried to convert the property into a freehold,laying ownership claims. When senior MCD officials were informed about it,the matter was taken to court,which ordered a status quo.

Later,the matter reached the High Court,which decided in the MCD’s favour and sealed the premises.

Officials have now announced that the prime property will be opened in a short while. The rules of licensing remain the same as before,wherein the licensee will be given the property for five years. Besides paying Rs 10 lakh per month as licensing fee,it will also be charged Rs 30 lakh as earnest payment. After five years,the licensee can extend the allotment for another five years at the absolute discretion of the Commissioner,MCD,and subject to 100 per cent enhancement to the present licence fee.

“MCD had to fight a lot to get the property back. After tenders for Shehnai are given away,we will focus on Cups And Saucers,which was also entangled in a legal battle. We are planning to rename it MCD Food Plaza,” the official added.

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