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NDMC to approach SG on Taj Mansingh auction

With the auction of Hotel Tajmansingh in New Delhi stuck in a legal battle, the New Delhi Municipal Council (NDMC), in a board meeting on Thursday, decided to seek advice of the Solicitor General of India on the future course of action in the case.

'We have decided to take the advice of the Solicitor General of India, as the Indian Hotels Company (IHC) which is operating the hotel has approached the court against the auction, demanding extension of the property lease given to the hotel,' said a senior officer of NDMC who attended the board meeting on Thursday.

'The Delhi High Court in its interim order on 9 Apirl had prevented any coercive action against the company, but did not halt the process of auctioning which needs to clarified legally,' he added. According to a source currently two cases, one at the Supreme Court and another in Delhi High Court, are pending regarding the re-allotment of the property.

The 33-year lease between the NDMC and IHC on the land on which the hotel is situated ended in October 2011. NDMC, the local civic body being the owner of the land, appointed a consultant about the future course of action which advised the re-auctioning of the land.
Meanwhile, the lease was twice extended, is due to end in November this year. NDMC wants to complete the re-auctioning of the land before the due date, but the IHC has challenged the process in the Delhi High Court contending that it had invested crores of money on developing the infrastructure on the land and hence deserves
an extension at a mutually agreed price.
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