Home ministry backs decision to auction Taj Mansingh Hotel

The Home Ministry on Thursday strongly backed the NDMC's decisions to auction Taj Mansingh Hotel and cancel the licence of Le Meridien hotel, saying the groups concerned can acquire them again by paying more.

Endorsing the decisions, a senior Home Ministry official said auction of Taj Mansingh should be held as early as possible, while cancellation of the licence of Le Meridien will facilitate an open auction.

"The companies which control the hotels enjoy good relations with the government but they cannot exploit it forever. If they have so much love for the two properties, they can acquire them by paying the highest amount in the auction," the official said.

The decisions were taken at a meeting of the NDMC held here today.

Taj Mansingh, owned by the NDMC, was given to Tata's Indian Hotels Company Limited (IHCL) on lease for 33 years.

The lease expired in 2011 and the company was given nine temporary extensions on various grounds.

The NDMC, which works under the administrative control of the Home Ministry, had got the nod to auction the hotel in March 2015.

However, the process got delayed with the Tatas moving court. The Supreme Court had in January this year asked the NDMC to reconsider the decision to auction the property.

The licence of Le Meridien, another posh hotel in Lutyens' Delhi, was canceled due to non-payment of Rs 523 crore as licence fee.