IHCL files injunction suit against NDMC for Taj Mahal Hotel
Indian Hotels Co Ltd (IHCL), the Tata Group's firm that operates the Taj Mahal hotel in New Delhi, has dragged the New Delhi Municipal Council (NDMC) to court to protect its position in the matter pertaining to the renewal of license of the hotel.
IHCL has reportedly filed an injunction suit against NDMC in the High Court of Delhi, seeking an order to stop NDMC from auctioning the rights of managing the hotel following the expiry of its extended lease in October.
The 33-year lease for the five-star hotel at Mansingh Road expired in October 2011, but the company than obtained a year's extension.
The injunction suit by IHCL comes days after the company secured its hold on the iconic Taj Palace hotel for another 25 years.
Officials from NDMC denied any knowledge about the injunction suit, while the Tata Group firm said in a statement that it had taken the step to protect its position.
However, the company didn't provide any details about the suit. It just said, "As the matter is now sub judice, we are not in a position to comment on this any further."
NDMC currently gets 10.5 per cent of the Taj's gross annual revenue as rent. The proposed auction is expected to result in a significant hike in the rent.
NDMC has reportedly hired Ernst & Young as consultant to get advice on the course of proposed action on the lease renewal.