The auctioning process of Taj Mansingh Hotel has got stuck because of two different Union ministries issuing two different directions in the matter.
In a recent move, the Union ministry of home affairs (MHA) has issued ‘show cause notice’ to the New Delhi Municipal Council seeking an explanation over the delay in auctioning. The ministry reportedly is planning to issue directions to the council to expedite the auction process of the hotel managed by Indian Hotels Company Ltd (IHCL).
According to sources, MHA is also considering the rejection of the ‘first right of refusal’ to IHCL and go in for a fresh auction. However, the ministry of urban development (MOUD), had directed NDMC on 27 June to seek the advice of the solicitor general on the issue as a case is pending in Delhi High Court for hearing on 7 November.
IHC argued that it had invested a lot in the construction of the property so deserves extension of the lease. The court, however, did not stay the process of auctioning but said IHC can seek legal recourse if NDMC initiates the process to vacate the premises.
‘Any direction from the government will be discussed in the next board meeting scheduled for 4 September,’ NDMC chairman Jalaj Srivastava told Millennium Post.
NDMC, however, has not set the rules to go in for fresh auctions or extend the lease period of hotels in its area. According to sources in NDMC, the decision to auction the hotel is likely to be challenged on the ground of ‘discrimination’ as it has extended the lease of several hotels and restaurants arbitrarily.
‘It would also be difficult for NDMC to ignore the advice of MOUD as it is the actual owner of the land. The land was handed over to NDMC on lease,’ said a senior officer of NDMC.
In a recent move, the Union ministry of home affairs (MHA) has issued ‘show cause notice’ to the New Delhi Municipal Council seeking an explanation over the delay in auctioning. The ministry reportedly is planning to issue directions to the council to expedite the auction process of the hotel managed by Indian Hotels Company Ltd (IHCL).
According to sources, MHA is also considering the rejection of the ‘first right of refusal’ to IHCL and go in for a fresh auction. However, the ministry of urban development (MOUD), had directed NDMC on 27 June to seek the advice of the solicitor general on the issue as a case is pending in Delhi High Court for hearing on 7 November.
IHC argued that it had invested a lot in the construction of the property so deserves extension of the lease. The court, however, did not stay the process of auctioning but said IHC can seek legal recourse if NDMC initiates the process to vacate the premises.
‘Any direction from the government will be discussed in the next board meeting scheduled for 4 September,’ NDMC chairman Jalaj Srivastava told Millennium Post.
NDMC, however, has not set the rules to go in for fresh auctions or extend the lease period of hotels in its area. According to sources in NDMC, the decision to auction the hotel is likely to be challenged on the ground of ‘discrimination’ as it has extended the lease of several hotels and restaurants arbitrarily.
‘It would also be difficult for NDMC to ignore the advice of MOUD as it is the actual owner of the land. The land was handed over to NDMC on lease,’ said a senior officer of NDMC.