The Supreme Court on Thursday allowed the Delhi civic body to auction Mansingh hotel, which is managed by the Taj Group of Hotels.
The Supreme Court asked the New Delhi Municipal Corporation to take into consideration the unblemished character, track record and capability of the Indian Hotels Co, the Tata Group company which runs the Taj chain.
The apex court said that the decision to go for an e-auction cannot be considered arbitrarily. Indian Hotels should be given six months to vacate the premises if it fails to retain the property in the auction, the court said.
In the last hearing, the NDMC had informed the court that it would not change its decision to auction the property. The NDMC had said it would go for an e-auction which will give the right of first refusal to Indian Hotels for all practical purposes.
NDMC argued that an open auction was the best way forward, adding that the Taj Group could participate as well.
(This article was originally published in BloombergQuint)
(At The Quint, we are answerable only to our audience. Play an active role in shaping our journalism by becoming a member. Because the truth is worth it.)