On Wednesday, the Delhi High Court upheld the New Delhi Municipal Council's (NDMC) decision to terminate its licence agreement with Bharat Hotels Ltd for the land housing The Lalit hotel at Barakhamba Lane. The court ordered Bharat Hotels to pay over ₹1,063 crore (approximately $128 million USD) in arrears of licence fees, citing a breach of contract. The NDMC had initially executed the licence deed with Bharat Hotels on April 22, 1982, allowing for a 99-year term at an annual fee of ₹1.45 crore (about $175,000 USD). The court noted that the NDMC was obligated to maximize returns on public land, and the significant difference between the existing licence fee and the revised ground rent demanded by the Land and Development Office (L&DO) would ultimately affect taxpayers. The court concluded that the termination of the licence agreement was justified due to Bharat Hotels' fundamental breaches, particularly concerning sub-licensing. This ruling underscores the importance of fiscal responsibility in managing public resources.