- Tatas had 33-year-lease for hotel property, then got 9 extensions
- Delhi officials win right to award new contract based on auction
- Tatas will have 6 months to vacate if they lose the auction
The Tatas had been given a 33-year lease for the property in one of the most central parts of the capital. The contract ended in 2011. The conglomerate's hotel division was given nine extensions after that. Last month, officials at a meeting headed by Chief Minister Arvind Kejriwal concluded that the hotel would be auctioned.
That decision came after the agency that controls the land - the New Delhi Municipal Council - was taken to court by the Tatas who wanted to have the lease renewed without an auction and claimed that the civic agency "would lose revenue" if the hotel was awarded to another player. The current arrangement provides "the best revenue", the group claimed in court.