Delhi High Court Upholds Termination of The LaLit Hotel's License and Revives ₹1,063 Crore Dues
Delhi HC revives ₹1,063 crore dues, upholds termination of The LaLit licence in NDMC case
The Economic TimesImage: The Economic Times
The Delhi High Court has reinstated the ₹1,063.74 crore license fee demand from the New Delhi Municipal Council (NDMC) against Bharat Hotels, owner of The LaLit hotel. The court upheld the termination of the hotel's license for breaching the 1982 license deed, emphasizing the importance of protecting public resources.
- 01The Delhi High Court revived a ₹1,063.74 crore license fee demand against Bharat Hotels.
- 02The LaLit hotel's license was terminated for breaching the 1982 license deed.
- 03The court emphasized the scarcity of land in New Delhi and its implications for taxpayers.
- 04The decision overturned a previous ruling that had quashed the NDMC's demand and termination notice.
- 05The NDMC must regain possession of The LaLit premises within 90 days.
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In a significant ruling, the Delhi High Court has revived the New Delhi Municipal Council's (NDMC) demand for ₹1,063.74 crore from Bharat Hotels, which operates The LaLit Suri Hospitality Group. The court upheld the termination of the hotel's license due to breaches of the 1982 license deed. The division bench, consisting of Chief Justice Devendra Kumar Upadhyaya and Justice Tushar Rao Gedela, stated that Bharat Hotels was found to be in fundamental breach of the license terms, justifying the NDMC's decision to terminate the license and reclaim possession of the hotel premises within 90 days. The court highlighted the critical nature of land resources in New Delhi, asserting that any loss to the NDMC ultimately impacts taxpayers. This ruling overturned a prior decision that had invalidated both the demand notice and the termination communication issued by the NDMC on February 13, 2020.
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The court's decision will lead to the NDMC reclaiming valuable land, potentially affecting local taxpayers by mitigating financial losses.
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