Delhi High Court seeks ownership proof from IHCL, NDMC

NEW DELHI: The Delhi High Court has directed Indian Hotels Company Ltd ( IHCL) and the New Delhi Municipal Corporation to submit their evidence by October 10 on the former’s claim that it is part owner of the iconic Taj Mansingh hotel in central Delhi. The hotel operator had filed an injunction in April last year to protect its position and stall a possible auction of the property by the civic body.

In its injunction, IHCL, which operates the Taj group of hotels, had said that the company has built a permanent structure there and had also spent a huge amount of money on the development of infrastructure in the area, claiming to have equity in the property.“The court has framed the issues. The statements of evidence will be submitted in the form of an affidavit by both parties by October 10 to the commissioner of the Delhi High Court,” said senior advocate Rishi Agrawala, who appeared for IHCL.

The 33-year lease for the hotel that began in 1978 ended in October 2011 after which the civic body decided to extend the lease with the existing operator for one year. During this period, the civic body had appointed Ernst & Young (now EY) to value the property and to find a way forward. EY, in its report, suggested auctioning the property, with the first right of refusal resting with the Taj.