NDMC auctions hotel at sky-high lease value

NEWDELHI: The New Delhi Municipal Council (NDMC) has auctioned a three-star hotel in central Delhi’s Janpath lane for 15 times higher the current lease rate for the space.

The auction process for Hotel Asia International, which was sealed by the NDMC in February 2015, over unpaid licence fee of ₹56 crore, was completed last week. “The auction amount was sealed at ₹45.48 lakh per month,” a senior NDMC official said.

The official said that it is more than 15 times the current lease amount of ₹3 lakh per month.

The NDMC had taken possession of the property in June last year, after the hotel authorities failed to abide by the eviction order on the expiry of its lease.

“We had issued an eviction order as their lease had expired long back. When they failed to vacate, we sealed the hotel and took possession of it,” the official said.

“Fifteen bidders had registered for an e-auction, the reserve price for which was set at ₹9.68 lakh per month,” he said.

Last year, the civic body decided to auction the 612.4 sqm property. However, the reserve price was changed time and again. It was first suggested it would be rented out for a ‘request for proposal’ of ₹61.88 lakh per month. Since there were no takers, the amount was first brought down to ₹28.73 lakh and then to just ₹14.40 lakh.