NDMC to meet to­mor­row to take a call on The Lalit’s li­cence

5-star prop­erty in New Delhi op­er­ated by Bharat Ho­tel

The Hindu Business Line - - NEWS - GARIMA SINGH

The New Delhi Mu­nic­i­pal Coun­cil (NDMC) may can­cel the li­cence of Bharat Ho­tel, which op­er­ates the five-star prop­erty in the cap­i­tal ‘The Lalit’.

A de­ci­sion on the can­cel­la­tion is likely to be taken up for con­sid­er­a­tion at the up­com­ing NDMC meet­ing on June 13, sources said.

NDMC is con­tem­plat­ing such a dras­tic action of li­cence can­cel­la­tion for “in­cur­able vi­o­la­tions” of terms and con­di­tions of the li­cence deed, as Bharat Ho­tels has sold out the li­censed pub­lic prop­erty (Bharat Ho­tels), which is strictly pro­hib­ited in the li­cence deed, they added.

Vi­o­lat­ing the li­cence deed

On June 13, NDMC will also take up a SBI Caps rec­om­men­da­tion to de­mand li­cence fee after the ex­piry of first thirty three years i.e., from March 11, 2014 on­wards in line with the rates fi­nally de­cided by the coun­cil till the date of can­cel­la­tion of the li­cence deed. After this, such amount will be raised as dam­ages in­stead of li­cence fee, till the ac­tual pos­ses­sion of the prop­erty is handed over by the ho­tel to the NDMC.

“We have re­ceived the rec­om­men­da­tions of SBI Caps and now the coun­cil will take a de­ci­sion on it in its meet­ing, which is to take place this week,” said an NDMC of­fi­cial

The coun­cil had ap­pointed SBI Caps to de­ter­mine the mar­ket value of the li­cence fee. After the re­vi­sion of the fees, The Lalit in the cap­i­tal may have to pay a li­cence fee of be­tween ₹96 crore and ₹98.5 crore per an­num in line with the cur­rent mar­ket rate. The ho­tel is cur­rently pay­ing a li­cence fee of about ₹1.44 crore an­nu­ally.

Last year, the NDMC also re­vised the li­cence fee of Taj Mans­ingh after it won the e-auc­tion con­ducted by the civic body. The Tatas bagged the 33-year lease con­tract for the prop­erty from NDMC.

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.