In a huge blow to the Tata group, the Supreme Court has allowed the New Delhi Municipal Council to e-auction the five-star hotel Taj Mahal, popularly known as Taj Mansingh.
A bench comprising Justices PC Ghose and RF Nariman allowed the NDMC plea that IHCL cannot have the right of refusal in the auctioning of the hotel.
The bench, however, asked the civic body to grant six months breathing time to the company in vacating the hotel in case they lose out in the e-auction.
The court also said that the blemish-free record of IHCL may be taken into account by NDMC while auctioning the iconic property.
The civic body had on March 3 told the apex court that it wants to e-auction the hotel.
The court had earlier asked IHCL, which challenged a Delhi high court order allowing the hotel’s auction, to file objections, if any, within a week.
IHCL had told the apex court that it was not clear why NDMC wanted to auction the prime property which gave the best revenue to it.
The apex court had on November 21 last year directed that status quo be maintained in the NDMC's auctioning process of Taj Mansingh Hotel.