Tata’s IHCL beats ITC, retains hotel in NDMC auction

The iconic Taj Mansingh hotel in Lutyen’s Zone has been retained by the Indian Hotels Company Limited (IHCL), a Tata group of company.

The prime property in New Delhi witnessed a fierce auction between IHCL and its rival ITC group on Friday which kicked off at 11 am and ended around 4 pm with IHCL winning the race after it quoted a steep licence fee of Rs 7.03 crore per month.

The licence fee agreed upon by IHCL stood 32.50 per cent of the gross turnover from the property. It may be noted that the licence fee prior to the high decible e-auction was Rs 3.94 crore per month.

“New Delhi Municipal Council (NDMC), the owner of the property that houses Taj Mansingh, has fetched around 79 per cent hike in the licence fee in this particular e-auction and hopes that the public resources of the NDMC shall help us give the budget that is needed for public welfare,” said a senior official

The licence will be for a period of 33 years. Interestingly, the auction was pending since the lease expired in 2011. Announcing the auction result, an NDMC official said the Tata group’s IHCL has retained the property at licence fees of Rs 7.03 crore per month, including GST.

The SBICAPS is the Transaction Adviser and the e-auction was conducted on the e-auction portal of MSTC Ltd, which is a PSU of Ministry of Steel, Government of India.

The e-auction was screened live at Palika Kendra Mega LED Screen and at the major locations of Connaught Place for ensuring transparency and fairness in the process.

The Taj property at 37, Shaheed Bhagat Singh Marg has about 85 rooms, 3 banquet halls and one swimming pool and is situated adjacent to Connaught Place.

“The licence fee out of this public property will help in boosting the revenue and financial potential of the NDMC which will help in financing the public projects,” the official added.

The NDMC had last year decided to auction The Connaught and re-auction Asian Hotel, after they were sealed by it in 2015 due to non-payment of license fees dues.

In January last year, the Asian Hotel was e-auctioned fetching Rs 45.5 lakh per month as licence fee, the highest-ever for the agency. But, the bidder later refused to take the property necessitating a re-auction.

The IHCL later issued a statement after stymieing the intense battle with ITC Ltd to wrest the management of Taj Mansigh.  “We are delighted that the iconic Taj Mahal, New Delhi which has been an important part of the cultural and historic fabric of the national Capital will continue to remain a part of the IHCL family,” IHCL CEO Puneet Chhatwal said