NDMC to auction Taj Mansingh, cancels Le Meridien Hotel licence

The New Delhi Municipal Council (NDMC) on Thursday announced that it will hold an auction of Tata group-owned Taj Mansingh Hotel here and that it has cancelled the licence of Le Meridien Hotel due to non-payment of fees.

"Important decisions in today's NDMC meeting -- Open auction of Taj Mansingh, cancel Le Meridian Hotel license.." Delhi Chief Minister Arvind Kejriwal tweeted.

Both the hotels -- Taj Mansingh and Le Meridien -- are iconic buildings and located in the heart of the city in Lutyen's Delhi.

The Delhi High Court on October 27 dismissed an appeal of Tata group-run Indian Hotels Company Ltd (IHCL) which runs the luxury Taj Mansingh Hotel against the auctioning of the property.

"We have taken a decision to hold an auction of Taj Mansingh Hotel and to cancel the licence of Le Meridian Hotel due to non-payment of fees worth Rs 527 crore till January 2017," NDMC Vice-Chairman Karan Singh Tanwar told IANS.

Tanwar said that the NDMC will soon initiate proceedings against Le Meridian Hotel under the Public Premises Eviction Act.

He added that, however, the date of auction of Taj Mansingh has not been finalised.

The Supreme Court on November 21 ordered status quo on Taj Mansingh Hotel, disallowing the NDMC plea that the hotel should not be allowed to take bookings after the year ends.

The IHCL had moved the top court challenging Delhi High Court's October 27 order.

The property, owned by the NDMC, was given to IHCL on a 33-year lease that ended in 2011. IHCL has since been managing the property on several extensions it has got from the municipal body.