It was decided by the council that any decision on the auctioning of hotel will be taken only after studying the court's notice. A special council will be called to discuss the matter. The decision would be taken within two weeks, Arun Kumar Mishra, PRO, NDMC told FE.
Tata Group's Indian Hotel Company, operator of Taj Mahal hotel, had challenged the NDMCs decision to auction its property in the Delhi High Court last week.
An NDMC official, however, said the auction process hasn't been stopped, adding the decision will be taken only after reviewing the Court's notice.
As the matter is now subjudice, we are not in a position to comment on this any further, Taj spokesperson statement said.
The 33-year lease of IHC for the hotel ended in October 2011. The NDMC then granted a one-year extension to IHC, buying itself time to decide the future course of the action for which it appointed E&Y to advise on the modalities to be followed once the lease period is over. E&Y had suggested renewal of the lease by renegotiating the terms or auctions by giving IHCL the right to match the highest bid.
In the freshly extended period, NDMC did not revise the revenue share the company would have to share with it, which is at 17.5% of the gross revenue. This was revised in 2011 when the lease expired and was extended by a year.