Tata Group retains iconic Taj Mansingh hotel in New Delhi Municipal Council auction
The group’s Indian Hotels Company Limited and ITC were the only firms that submitted bids.
The Tata Group on Friday retained the iconic Taj Mansingh hotel in an auction conducted by the New Delhi Municipal Council. “The Tata Group’s Indian Hotels Company Limited, has retained the property at a licence fee of Rs 7.03 crore per month including the Goods and Services Tax,” an unidentified civic official told PTI. “Earlier, they were paying Rs 3.94 crore per month.”
The Indian Hotels Company Limited and ITC were the only firms bidding, The Economic Times reported. The deadline to submit bids ended on September 20.
The auction began at 11 am with a starting bid of 24% of the gross turnover of the property. It finished at 4 pm, with the winning bid of Rs 7.03 crore per month at 32.50% of the gross turnover.
The auction had been pending since 2011, when the 33-year lease given to the Tata Group expired. The New Delhi Municipal Corporation was engaged in a legal battle with Indian Hotels Company Limited, and operated the property through temporary extensions.