Tata retains iconic Taj Mansingh in auction

NEW DELHI: After years of litigation, Tata group’s Indian Hotels Company Limited (IHCL), on Friday, retained the iconic Taj Mansingh Hotel in Lutyens’ Delhi in an auction, according to the New Delhi Municipal Council (NDMC).

The Tata firm, who were operating the property on temporary extensions since the previous lease ran out in 2011, will now pay double the licence fees for the 33-year long lease after winning the hotly-contested e-auction. 

In a statement, the NDMC said: “After intense bid battle between ITC Limited and Indian Hotels Company Limited (Tata Group), the auction resulted in fetching 32.50 per cent of GTO (Gross Turn Over) for NDMC, which is about 78 per cent increase from the existing licence fee. M/s. Indian Hotels Company Limited (Tata Group) is declared as the highest successful bidder.  The licence will be for a period of 33 years.”

The statement said that before the 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.  This auction has helped  NDMC in fetching the licence fee as per the current market rates.”          

In a bid to ensure transparency and fairness, the e-auction was screened live at Palika Kendra Mega LED Screen and at the major locations of Connaught Place.

After two failed attempts, the NDMC, last month, eased the eligibility criteria for bidders and reduce the minimum number of bids required. The auction was put off twice as it got less than the required number of bids for it to go under the hammer.

Earlier, the civic body had issued an annulment notice for the e-auction in June when it had to be cancelled as only IHCL — the existing operator — had submitted its bid for retaining the property. 

The Taj Mansingh was given to the Tata group in 1978 on a lease for 33 years, which ended in 2011. The company was since given nine temporary extensions. The NDMC, however, could not auction the property then as it was tied up in a legal battle with the IHCL.

“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,” said MD and CEO, IHCL, Puneet Chhatwal.

“We would like to thank our customers for their enthusiastic support and our employees, who have always offered exceptional service to our guests for over 40 years. We look forward to investing in the hotel and taking it to new heights of Indian hospitality. The Taj legend will continue to serve Delhi with elegance and charm," Mr Chhatwal added.