Page 89 - e-Budget Speech - Final

New Delhi Municipal Council | Budget 2019 – 20
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8.3.1 Serious litigation involving e-auction of licensing rights of major hotel
properties have been successfully completed. In a specific time period the
litigations have not only come to conclusion from District Courts to Supreme
Court, but also tenders were floated for e-auction and licensing rights of all the
three Hotel properties numbered property No. 1 at Mansingh Road, property
No. 36 at Bhagat Singh Place and property No. 1 at Janpath Lane were
successfully e-auctioned. The e-auction was made live at public places and
possession of these properties have been handedover to the successful bidders.
Details of e-auction are as follows:
(i) licensing rights of property at 1, Mansingh Road has been e-auctioned
to M/s. India Hotels Company Ltd at licence fee of higher of (32.50%
of the Gross Turn Over or Rs.35.58 crore per annum) against earlier
licence fee of (17.25% of the Gross Turn Over or Rs.21 crore per
annum);
(ii) licensing rights of property at 37, Shaheed Bhagat Singh Marg has
been e-auctioned to M/s. India Hotels Company Ltd at licence fee of
higher of 31.80% of the Gross Turn Over or Rs.5.868 crore per
annum;

(iii) licensing rights of property at 1, Janpath has been e-auctioned to M/s.
Imperative Hospitality at licence fee of higher of 39.50% of the Gross
Turn Over or Rs.1.19 crore per annum.

8.3.2 An amount of Rs.33.11 crores approx. has been received upto
20.12.2018 as upfront payment etc. in respect of these auctions and it is
presumed that the increased license fee/ license fee will boost the municipal
revenue. Incase of property No.1 at Mansingh Road, the revenue share of
NDMC has been increased by about 80%.

8.3.3 The actual receipts in 2017-18 for Licence Fee from municipal
Properties stood at Rs.403.49 Crore. The projections for RE 2018-19 are at
Rs.514.67 crore and BE 2019-20 are at Rs.554.72 crore.

8.4 All steps will be taken by the NDMC to use its resources judicially in a
equitable manner.

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