In a big setback to Tata group, the Delhi High Court on Thursday gave its nod to auction the Tata Group-run Indian Hotels Company Ltd (IHCL), which runs the luxury Taj Mansingh Hotel.
A division bench of Justice Pradeep Nandrajog and Justice Pratibha Rani pronounced the order on IHCL’s plea which had filed an appeal against a single judge order upholding hotel’s auction.
On September 25, a single judge had dismissed the suit by the current operator, IHCL, to renew its licence and upheld the NDMC’s decision to go for auction. Next day, the IHCL filed an appeal before the division bench against this order.
The property, owned by NDMC, was given to IHCL on a lease for 33 years, which had ended in 2011 and it has been managing the property since then, on several extensions it has got. The IHCL in 2013 filed a civil suit against the civic body in the Delhi High Court after it decided to auction the property.