A Re-Auction To Be Held By NDMC For A 3-Star Property In Janpath, Central Delhi

The New Delhi Municipal Council is all set to re-auction its three star property situated in Janpath’s Lane (Central Delhi), which is Hotel Asia International. The place was auctioned two months before also, for an amount that was 15 times more than its lease value.

Even after the place going under the hammer at such a huge amount, a re-auction is going to be conducted as the bidder, selected in January, was unable to meet the terms and conditions.

A recent meeting of NDMC took place where the decision of re-auction took place along with the decisions of auctioning off the Taj Mansingh Hotel and cancelling the license of Le Meridian on account of failing to pay the dues.

The first auction of the property had derived Rs. 45.48 lakhs per month which in comparison to its lease amount was 15 times more. The earlier amount was just Rs.3 lakhs per month.
This 3-star property, Hotel Asia international had been sealed by the NDMC in February 2015 on account of non-payment of license fees which had reached up to Rs. 56 crores. Later, in June 2015 the NDMC took over the possession of the property when the orders of eviction were not abided by the hotel authorities after the expiry of the lease.

After a year of possession, the civic body of NDMC decided to auction off the property last year which was 612.4 square meters in area. The reserve price kept changing as the process took place.

Before re-auction of Hotel Asia International decision came up, it was said that it will be rented out for Request For Proposal (RFP) at 61.88 lakhs per month. However, this came down to 28.73 lakhs and even further decreased to 14.40 lakhs with no takers interested in this proposal.