Iconic Taj Mansingh hotel to remain with Tata Group

IHCL bid for 32.5% of gross turnover wins in NDMC auction
The Taj Mahal Hotel on Mansingh Road in Lutyens’ Delhi will remain with the Tata Group’s Indian Hotels Company Limited (IHCL), which won the auction for a 33-year lease on Friday, the New Delhi Municipal Council (NDMC) said. The 33-year lease for the property at 1, Mansingh Road, had expired in 2011, but the auction had been pending due to litigation. In April, the NDMC was given the go-ahead for the auction by the Supreme Court.
Two bidders
Starting 11 a.m. on Friday, the e-auction was conducted, with IHCL and ITC Ltd. bidding for the property, the NDMC said in a statement. The auction closed at 4.01 p.m., with IHCL’s bid for 32.5% of the gross turnover (GTO) winning. This would be an increase of 78% from the existing licence fee paid by IHCL, the NDMC said.
“Before e-auction of the property, IHCL used to pay Rs. 3.94 crore per month, including GST. Now, with this increase, it will be paying about Rs. 7.03 crore per month, including GST, as per the current GTO provided by the IHCL,” the NDMC statement said, adding that the lease would be for 33 years. In a statement, Puneet Chhatwal, the Managing Director and Chief Executive Officer (CEO) of IHCL, said: “We are delighted that the iconic Taj Mahal, New Delhi, which has been an important part of the cultural and historic fabric of the National Capital, will continue to remain a part of the IHCL family.”
Friday’s auction was the third attempt by the NDMC, with the first two attempts failing and forcing the civic body to relax the eligibility criteria for participants.
Source :  https://www.thehindu.com/todays-paper/tp-national/taj-mansingh-hotel-to-remain-with-tatas/article25076431.ece

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