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• The Supreme Court has granted interim relief to Bharat Hotels in its dispute with NDMC over The Lalit New Delhi property.
• The apex court directed both parties to maintain status quo, stopping immediate action against the hotel property.
• The dispute relates to termination of the land licence agreement and recovery of over INR 1,063 crore in alleged dues.
• The Delhi High Court had recently upheld NDMC’s decision to end the licence agreement with Bharat Hotels.
• The case is being closely watched by the hospitality and real estate sectors due to its possible impact on long-term government land lease agreements.
Bharat Hotels, operator of The Lalit New Delhi, has received temporary relief from the Supreme Court in its ongoing dispute with the New Delhi Municipal Council (NDMC) over the hotel’s land licence agreement in central Delhi. Advertisement
The Supreme Court recently directed both parties to maintain status quo in the matter, preventing any immediate coercive action against the luxury hotel property located at Barakhamba Avenue. The order came after Bharat Hotels challenged a recent Delhi High Court ruling that had upheld NDMC’s decision to terminate the licence agreement and recover more than INR 1,063 crore in alleged dues.
The dispute is linked to the 6.05-acre land parcel on which The Lalit New Delhi operates. The property was originally allotted by the then New Delhi Municipal Committee in the early 1980s for development of a five-star hotel project in the capital ahead of the Asian Games period.
NDMC had issued notices to Bharat Hotels a few years ago seeking revised licence fees and alleging violations of licence conditions. The civic body also raised concerns regarding commercial use and sub-licensing of spaces within the hotel complex. According to NDMC, the property was continuing on terms that no longer reflected prevailing market rates for prime public land in central Delhi.
The legal dispute continued for several years before a single-judge bench of the Delhi High Court earlier provided relief to Bharat Hotels by setting aside NDMC’s notices. However, a division bench of the High Court recently overturned that decision and ruled in favour of NDMC, allowing the termination notice and financial demand to stand.
Following the High Court order, Bharat Hotels approached the Supreme Court seeking protection against cancellation of the licence agreement and any immediate recovery action. The apex court’s latest interim order has ensured that the hotel can continue operations while the matter remains under judicial consideration.
The case has drawn significant attention within the hospitality and real estate sectors because it involves one of Delhi’s prominent luxury hotel properties operating on government-owned land. Industry observers believe the outcome could influence future disputes involving long-term land licence agreements, licence fee revisions and commercial use conditions attached to public properties.
The Lalit New Delhi currently remains operational, and no immediate possession-related action can be taken by NDMC until further hearings before the Supreme Court.
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