The Taj Mansingh will remain as Taj Mansingh. There was a bitter sweet litigation battle with New Delhi Municipal Council after which the Indian Hotels Co retained the lease on the iconic property for another 33 years in a fiercely fought auction with rival ITC hotels . The Tata company submitted its final winning bid that was of Rs 7.03 crore per month or 32.5 % of the hotel’s gross turnover. IHCL was previously paying a licence fee of Rs 3.94 Crore 17.25 percent of gross turnover to NDMC. ITC fought really hard and pushed the auction beyond 3 pm. IHCL had moved against NDMC alleging that the revised tender that was issued by the civic body did not take into account it’s blemish free record.
The supreme court had mentioned that it would not interfere in the dispute between IHCL and the civic body concerning the hotel auction. Ultimately the petition was withdrawn. NDMC said further that the auction did not dispose a property but it established the law and principles in fixing the licensed fee. Taj Mansingh indicates the current market value whereas CJ International and Bharat Hotels whose licensed term expires after 33 years are disputing and refusing to pay the current market value. NDMC is literally feeling handicapped to put them on auction since they are under litigation.
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