The NDMC cancelled the licence of Le Meridien, saying that that it has not paid the licence fee and Rs 518.80 crore is due from CJ International Ltd, owners of Le Meridien
In a major blow to two five-star hotels in the capital, the New Delhi Municipal Council (NDMC) on Thursday decided to conduct an open auction of the Taj Mansingh Hotel soon and cancelled the licence of Le Meridien Hotel for non-payment of fees. The decision was taken in a meeting of the Council in the presence of Delhi Chief Minister Arvind Kejriwal, senior officials said.
The NDMC cancelled the licence of Le Meridien, saying that that it has not paid the licence fee and Rs 518.80 crore is due from CJ International Ltd, owners of Le Meridien.
“The Council also decided to move the Delhi HC ...to initiate eviction and recovery proceedings against the hotel,” the NDMC said.
According to senior officials, the hotel has dues of Rs 526 crore (excluding taxes) as on January 2017, which they have not been able to clear despite several notices. The NDMC has also alleged major irregularities by the hotel.
“Since the licence has been terminated, the NDMC will start the process of eviction of people from hotel premises soon,” said an official.
The Council also gave orders to bring the iconic Taj Mansingh hotel under the hammer after a long-drawn legal battle. But the authorities refrained from saying anything on this matter.
“The matter is sub-judice and we are waiting for the court hearing tomorrow,” said a senior official.
However, the minutes of the meeting presided by CM Arvind Kejriwal said, “The best available method to NDMC, which is a public authority and custodian of public property, to obtain the fair market value of rental of the said property in a fair, reasonable, non-discriminatory, transparent non-capricious, unbiased without favouritism or nepotism, in pursuit of promotion of healthy competition and equitable treatment and to sub-serve the common good, is to opt for the e-auction of the said property”.
The civic body has been locked in a tussle with the Indian Hotels Company Ltd (IHCL) owned by the Tata group, where the High Court had passed an order allowing the NDMC to auction the property.
In November 2016, the IHCL had moved the Supreme Court against a Delhi HC order allowing NDMC to auction the Taj Hotel, arguing that there was no need to do so as it generates good revenue for the civic body.
Challenging this decision by the HC, the Tatas moved the SC, where it was directed to reconsider its decision on extending the lease of the iconic hotel.
“NDMC will go for auction for the grant of licence of the Hotel and the SC would be apprised accordingly,” said the statement.
Meanwhile, sources in Taj Mansingh said that they are waiting for the apex court hearing scheduled for Friday.
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