The Indian Hotel Company (IHCl), in all likelihood, may get a six-month extension to run the Taj Mansingh Hotel in the Capital. The decision may be taken in the meeting of New Delhi Municipal Council (NDMC) on Monday where the issue of lease to IHC will be discussed.
Sources in the Council said it was yet to receive the opinion of the Solicitor General and hence, it was unlikely that the lease would be terminated. A senior official indicated that any final decision over the issue could only be taken after the Delhi Assembly polls. Extension of lease to the IHC by another six months would allow the company to run the hotel till March 2014, he said. The lease for the property is ending on October 10.
Further, sources said, the Model Code of Conduct enforced in the Capital would also prohibit the NDMC from going for fresh auctioning of the property. The election in the Capital is scheduled for December 4. Sources, however, said several international players were also queuing up for bidding for Taj Mansingh.
These include chains like Hyatt, Starwood, Hilton and Accor Groups, among others. According to sources, these companies might bid higher prices for the hotel that is being run by the IHC for the last three decades. Further, extension of lease would give sufficient time to the interested bidders.
In April, IHC had approached the Delhi High Court to secure a stay on the auction of its Mansingh property. The matter would be heard on November 7. The Court had assured the company it could seek legal recourse if NDMC took any coercive action. The company had signed a 33-year lease agreement for the property, which expired in October 2011. Subsequently, NDMC extended it by a year. While the company expected the lease to be renewed in October 2012, NDMC decided to hold an auction within a year.