The New Delhi Municipal Council (NDMC) has allowed the Tata Group to run the Taj Mansingh Hotel for up to another year, ending the suspense for now on the fate of the iconic property located at a prime spot in Lutyens Delhi.
The conglomerate, whose company Indian Hotels has run the luxury property for 34 years, will also have the right to match the highest bid when controlling rights for the hotel are auctioned.
NDMC, the property's owner, on Thursday decided to extend the lease with Indian Hotels till October 2013 while reserving the right to find a new operator through an open auction before the extended lease ends. The Tatas will have the right of first refusal, which will allow the group to match the highest bid at the auction.
"The lease will be till the auction process is over or one year, whichever is earlier. Taj will be given a notice to vacate as soon as the auction is done, if they decide not to match the highest bidder," said NDMC spokesman Amit Prasad.
"The right of first refusal has been added so as to avoid any disturbance to a running hotel and to maximise revenues for NDMC."