IHCL signs formal agreement with NDMC for Taj Mansingh

After the much anticipated public e auction of Taj Mansingh in September last year, a formal agreement was signed between between Indian Hotels CompanyNSE -0.43 % and the New Delhi Municipal Council under the revised terms and conditions on Thursday.

NDMC officials said starting April 11, NDMC will get 32.5 % more revenue as against about 17.25 % under the previous terms and conditions for hotel Taj Mansingh.

"The revised agreement has been signed today. From this day onwards (April 11) NDMC will get 32.5 % more revenue as against about 17.25 %. This is the biggest achievement of the chairman of the New Delhi Municipal Council, who could plan the public auction , settle the legal litigation, auction the property and finally implement it on the ground. We may thank all specially ASG Sanjay Jain and our honorable council members for making it possible," said an NDMC official.

After years of litigation and a bitter battle with the New Delhi Municipal Council (NDMC) which reached the apex court, Indian Hotels Co (IHCL) retained the lease on the iconic property for another 33 years in a fiercely fought auction with rival ITC Hotels in September last year. The Tata Group company had submitted the winning bid at a licence fee of Rs 7.03 crore or 32.50% of the hotel’s gross turnover. IHCL was previously paying a monthly licence fee of Rs 3.94 crore or 17.25% of gross turnover to NDMC.

NDMC put the property up for auction after IHCL’s 33-year lease ended in 2011. IHCL had been operating it since then through short-term extensions.

Source:-https://economictimes.indiatimes.com/industry/services/hotels-/-restaurants/ihcl-signs-formal-agreement-with-ndmc-for-taj-mansingh/articleshow/68837648.cms