Tatas fight for rights over iconic Taj Mahal Hotel on Mansingh Road
The Tata group has told the Delhi High Court that they have invested 21 times more than the New Delhi Municipal Corporation.
In Short
- Tata mounted its defence for asserting right for lease renewal.
- NDMC invested Rs 6 crore, Taj invested over Rs 400 Cr
- Single Judge cleared decks for NDMC auction due to lease expiry in 2011.
The battle over the iconic Taj Mahal Hotel on Mansingh Road has now intensified at the Delhi High Court with Tata mounting its defence by asserting its "right" for lease renewal. The Tata group has told the Delhi High Court that they have invested 21 times more than the New Delhi Municipal Corporation.
Senior advocate Harish Salve for representing Taj told Delhi HC that NDMC has invested merely Rs 6 crore while, Taj pumped in over 129cr with a paid license fee of over Rs 400 crore. The legacy of Taj has been built by the company as the hotel played host to the most prestigious events in the country. The company further said that Tatas have contractual right of renewal and NDMC must renegotiate with Taj.
In its defence the company pointed out that Taj is not a mere lease holder, Taj collaborated, partnered with NDMC in building the brand and it can't be expected to bid for value that the Taj indigenously created.
Earlier the single judge bench of Del High Court had allowed NDMC to proceed with Taj Man Singh Auction. Taj has challenged single judge order before division bench of Del HC. Indian Hotel Company Limited has been operating the hotel since 1978.
The company had been allowed a 33 year lease which expired in 2011. On Sep 5, Single Judge Bench of Delhi HC cleared decks for NDMC auctioning the property.