Following orders from the Union home ministry, the New Delhi Municipal Council (NDMC) on Tuesday set a three-month deadline for auctioning the Taj Mansingh Hotel.
The decision was taken in a special meeting held prior to the NDMC Budget session on Wednesday. “A special meeting of the council was held on the Taj Mansingh issue. The ministry directive, which we had received on January 2 or 3, was placed in the meeting. A decision was taken to give a three-month extension to them. They can continue operations till then. In the meantime, NDMC has to work on the bidding process,” NDMC chairperson Jalaj Srivastava 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 the six temporary extensions given to IHCL after the expiry of the lease agreement in 2011.
Considered to be a unique joint venture between NDMC and 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 NDMC, IHCL was responsible for operating and maintaining the hotel.
Following the expiry of the lease in 2011, a year-long extension was given to IHCL and 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.
NDMC officials maintained that since the civic body had not conducted an auction of such a magnitude in the past, the council will put out advertisements for getting an adviser on board for the case.
Share
