NDMC has five hotel properties within its jurisdiction, where land and in some cases, both land and building, have been given out on lease. The properties comprise Bharat Hotels (Lalit), Connaught Hotel, Le Meridien , Metropolitan Hotel and Taj Mansingh. Sources said Le Meridien and Connaught Hotel were leased for 99 years. According to the contract, Le Meridien had to pay 21% of its gross turnover or Rs 2.68 crore per annum-whichever is higher-to NDMC. Similarly, Connaught Hotel had to pay 23% of its gross turnover or Rs 21.08 lakh per annum. Amit Prasad, director, press and information , NDMC, said, "Both Le Meridien and Connaught Hotel owe NDMC a huge sum. Our records show Le Meridien and Connaught Hotel have to pay Rs 416 crore and Rs 96 crore respectively." According to NDMC rules, the civic agency charges an annual licence fee on the properties given on lease. "In these cases, the land and building is owned by NDMC. But these hotels have not been paying licence fee regularly, which has resulted in a huge loss to the agency. We had taken legal action and the matter is sub judice,'' said an NDMC official. Afew years after Le Meridien started its operations in 1998, it got embroiled in a dispute with NDMC over the amount payable to the latter as licence fee. The matter was taken to court. "The Delhi high court had ordered Le Meridien to pay Rs 1 crore a month to NDMC and Connaught Hotel to pay Rs 20 lakh amonth,'' said a senior NDMC official.
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