The Supreme Court on Thursday rejected the Tata Group’s plea and allowed the civic agency New Delhi Municipal Corporation (NDMC) to e-auction the iconic Taj Mansingh hotel. The apex court gave Tata Group six months as “breathing time” and said if it loses the e-auction, the Tata Group will have to vacate the premises.
Last month, the New Delhi Municipal Council (NDMC) had told the Supreme Court that it has decided to e-auction the Taj Mansingh Hotel.
“We have taken a decision to hold an e-auction. It would be an open auction. We will decide the date once this court permits us,” Additional Solicitor General Sanjay Jain appearing for NDMC told the bench of Justice Pinaki Ghosh and Justice R.F Nariman.
Taj Mansingh, also known as Taj Mahal hotel, is presently run by Indian Hotels Company Limited (IHCL).
Earlier, the court had asked IHCL, which challenged the Delhi High Court order allowing the auction of Taj Mansingh, to file objections, if any.
The IHCL in its response had said that it was not clear why NDMC wanted to auction the property when it was giving them the maximum revenue.
The Tata Group had been given a 33-year-lease for the property and the contract ended in 2011. IHCL has since been managing the property on several extensions it has got from the municipal body.
Last month, a meeting chaired by Delhi Chief Minister Arvind Kejriwal came to the conclusion that the property needs to be auctioned.
(With IANS inputs)