Indian Hotels Company Ltd clarifies on auction of Taj Mansingh Hotel

The Exchange had sought clarification from Indian Hotels Company Ltd with respect to news media "SC allows Delhi municipal council to auction Taj Mansingh Hotel."

The Company had filed a Special Leave Petition before the Hon'ble Supreme Court of India challenging the dismissal of the Appeal against NDMC seeking to restrain NDMC from going ahead with public auction of Taj Mansingh Hotel, New Delhi to determine the market price of licence fee. On conclusion of hearing today, the Supreme Court has permitted e-auction of the hotel building at 1, Mansingh Road, New Delhi. The copy of the final order is still awaited.

The Supreme Court has also recorded that after conclusion of e-auction, while deciding the party to whom operating license of the hotel will be granted, NDMC will take into account the blemish less record of Taj, it's capabilities etc. Notably, IHCL will be entitled to participate in the e-auction.

The Supreme Court has also directed that IHCL will continue to be in possession of the hotel till the e-auction and in the event the license to operate the hotel is granted to some other party, IHCL will be given at least six months to vacate the property.

Shares of INDIAN HOTELS CO.LTD. was last trading in BSE at Rs.126.5 as compared to the previous close of Rs. 128.2. The total number of shares traded during the day was 130421 in over 1442 trades.

The stock hit an intraday high of Rs. 129 and intraday low of 123.8. The net turnover during the day was Rs. 16456013.

Source : Equity Bulls

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