Taj Palace Delhi, Lease renewed

By Accommodation Times News Services

The Licence Agreement for Taj Palace Hotel at Sardar Patel Marg, New Delhi has been renewed for a further period of 25 years beyond 31.3.2013 in terms of the original Agreement. The renewal of Licence Agreement was granted after settlement of all outstanding dues. This is final extension of Licence Agreement.

Apart from other conditions, as per Article-VII of the Licence Agreement, initially the licence was granted for a period of 30 years commencing from 1.4.1983 subject to the condition that the licencee shall be bound by the observe and perform all the terms and conditions contained in the Agreement throughout the period of the license.

The Licence Agreement further provides that the licencee shall have the option of renewing the licence of the said hotel building for a further period of 25 years on giving notice in writing of such intention to the licenser atleast six months before the expiration of the licence granted, and the licenser would renew it upon the same terms and conditions as are therein contained excepting only the Clause as to renewal, and subject to the payment of licence fee as contained in Clause(1) of the Article-VIII of the Licence Agreement.

Considering the above provisions in the original Licence Agreement executed between the Indian Hotels Company Ltd. and the Delhi Development Authority and the fact that the licencee has opted for renewal of the licence and submitted his option within the time frame prescribed in the Licence Agreement and also settlement of all outstanding dues, the Competent Authority has decided to renew the licence Agreement for a further period of 25 years beyond 31.3.2013, subject to the same terms and conditions.

This information was given by the Minister of State for Urban Development Smt. Deepa Dasmunsi in a written reply to a question in Lok Sabha on 8th May 2013.





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