Delhi HC allows auction of Taj Mansingh to go ahead, dismisses Indian Hotels plea against tender
The court said it could not conclude that the terms of the auction by the New Delhi Municipal Council were arbitrary and unreasonable.
The Delhi High Court on Tuesday dismissed a petition by Tata Group-owned Indian Hotels Company Limited challenging the tender process for the auction of New Delhi’s Taj Mansingh Hotel, PTI reported.
In April 2017, the Supreme Court had given permission to the New Delhi Municipal Council to e-auction the hotel. The Indian Hotels Company Limited, which owns it now, had moved the High Court seeking to get the tender process quashed after the NDMC initiated it last month.
The plea had said that the NDMC ignored the Supreme Court’s order that it should consider the company’s “blemish-free” record while auctioning the hotel. It also questioned the revenue-sharing model in the tender document.
However, the NDMC told the court it had considered Indian Hotels’ track record and had not put any conditions on the company, even as it imposed several conditions on other bidders.
The bench of Justices S Ravindra Bhat and AK Chawla said it was unable to come to the conclusion that the conditions prescribed by the NDMC for the auction were arbitrary and unreasonable.
Indian Hotels had entered into an agreement with the NDMC to construct the five-star Taj Mahal Hotel in December 1976. The original agreement expired in 2011, but the Tata group subsidiary continued to run the hotel on extensions.