Tata positive about renewing Taj Mansingh lease

The lease for the famous Taj Mahal Hotel, one of Tata's most iconic properties in Lutyens, Delhi popularly known as Taj Mansingh is about to expire in October. However, Tata is positive of renewing its lease, reports Nayantara Rai of CNBC-TV18.

There have been reports claiming that the Additional Solicitor General has said the renewal is not possible. And the government should now be looking at an auction.

However, sources suggest, the Tatas led by Krishna Kumar have been in advanced talks with the Delhi government, the NMDC and Urban Development Minister Kamal Nath to renew that lease. But, given the opinion that has come in from the Additional Solicitor General, chances of an auction is also high.

The initial lease signed with NMDC did not have an option for a RoFR. But, the Tatas have a strong legal case for a RoFR, which means if there is an auction, the Tatas will have an option to match the highest bid.

Hoteliers are a little fazed at how exactly the reserve price is going to be fixed since there will be no capital investments. They perhaps expect deposits of a few hundred crore rupees and an annual turnover of nearly 30-40 percent to be shared with the Delhi government.