The Taj Mansingh Hotel near Khan Market in Delhi.
The iconic Taj Mansingh Hotel located in the heart of New Delhi has got a three month reprieve for its owners, the Tata owned Indian Hotels Company Ltd (IHCL). The auction had originally been announced for today but when the matter came up before the New Delhi Municipal Council (NDMC), the land owners, at a special meeting, it was decided to extend the lease for three months.
NDMC Chairperson Jalaj Srivastava told reporters that the Home Ministry had issued a directive that the hotel ought to be auctioned. "I had placed the matter before the Council, which has instructed me to complete the auction proceedings within three months and Taj Mansingh has been given an extension to continue its operations till then."
The property was given to IHCL on lease for 33 years. The lease ended in 2011 and the company has been given six temporary extensions since then on various grounds. The current lease agreement, which expires on March 31, has now been extended till June 30.
The NDMC works under the administrative control of the Union Home Ministry and now needs to find outside help from private players to conduct the auction. They had originally contracted Ernst & Young but the company pulled out.
The property is located on a prime location and it is expected that there will be fierce bidding from the Taj Group's major rivals in the industry.