Stuck in procedural delays, the New Delhi Municipal Council (NDMC) on Monday gave an extension of six months to the Indian Hotels Company limited (IHCl) for the operation and maintenance of the iconic Taj Mansingh Hotel. The extension of the lease which is slated to expire after two days has come as a temporary relief to the Tata-owned IHCl group.
“The lease to the IHCl to operate the Taj Mansingh hotel has been extended till March 31 next year. A final decision on the issue will be taken after receiving the Solicitor General’s opinion as well as directives of the Union Home Ministry which is the controlling authority of the municipal body,” said Jalaj Srivastava, chairperson of NDMC.
The decision to extend the lease to the Tatas was taken at a meeting of the Council, a month after it sought the opinion of Solicitor General, Mohan Parasaran on whether IHCl should be given the first right of refusal in the auction for the hotel. The IHCl has been operating the five star hotel for the last 35 years.
Srivastava further said, “The lease is extended till March 2014, but if the Home Ministry conveys instructions with Solicitor General’s opinion before it, the Council will immediately take up the issue. If we get the opinion of the Solicitor General, we can call a special meeting within 48 hours on the matter.”
The Home Ministry had routed the Council’s request for Solicitor General’s opinion on the vexed issue through the law Ministry.
“There are three Ministries involved — the Home Ministry, Urban Ministry and now the law Ministry. I don’t think there is any room for delay. I am hoping, we will receive the SG’s opinion and the MHA’s instructions on the matter soon,” Srivastava added.
The opinion of the law officer was sought after there were divergent views on giving the first right of refusal to the IHCl in case auction takes place. While the Council was in favour of giving the first right of refusal, the Home Ministry was against this arguing that it may attract lower bids.