NEW DELHI: Following objections that its eligibility criteria to bid for
Taj Mansingh were too restrictive, the
New Delhi Municipal Council (
NDMC) will rework on the same. Council chairman Naresh Kumar said the agency will "take a final call at its meeting scheduled for Monday."
The e-auction for the property, that was to take place on January 30, was delayed after some hospitality sector players pointed out that the 'restrictive' qualification requirements meant only groups already running five star hotels in India can bid for the Taj Mansingh. Such groups were to have at least 500 rooms in not more than five 5-star properties and have a sizeable net worth and operational income from hotels. This left out financial investors and foreign hotel operators.
Under the existing bidding conditions, only a handful of hospitality players like ITC, Oberoi and Taj could have bid for the hotel. The iconic Mansingh Road property was given to
Tata Group's Taj Hotels on a lease for 33 years, which ended in 2011.
NDMC had kept a minimum reserve price of Rs 32.2 crore for the Taj Mansingh. The tender calls for a minimum revenue share arrangement of 17.25% of the gross revenue and a minimum guarantee fee of about Rs 3 crore per month, subject to escalation, to be paid by the successful bidder.
Taj Mansingh (TOI file photo)
