NDMC to auction Lodhi restaurant

NDMC to auction Lodhi restaurant

The NDMC will soon auction the restaurant at Lodhi Garden. The council has decided to conduct the auction instead of renewing the licence for the lease as the revenue generated through the current licensee was less compared to the average market rates.

“The restaurant is on the council property. We have decided to conduct fresh auction instead of renewing the licence as the property has been given out on lease at low rates. Given the nature of the plot, the council has decided to set higher rates for giving the space on lease,” said a senior official of the New Delhi Municipal Council.

“The revenue being generated through the current lease was low,” the official added. The restaurant is spread over 2,618 sq ft of covered area and 16,300 sq ft of open area. Aresko Restaurants which ran the eatery at the Lodhi Garden for around 10 years had applied for renewal of licence in 2013. According to council sources, around Rs 60,000 per month is being paid by the company to the NDMC even though the market rates of comparable properties is “huge”.

The fine dining restaurant opposite Mausam Bhawan serves European, Lebanese and Mediterranean cuisines.

The council has now decided conduct e-auction for the property.  The NDMC is conducting the e-auction through MSTC Limited, a government company. It is engaged in domestic and international trading activity for over 30 years now.

“The e-auction is likely to be opened for bidders either on August 24. However, the companies which meet the requirements can start registering the details online. Each company needs to log in through by creating its password. We decided to go for e-auction as it is a smooth procedure and also help improve transparency,” said the official.

The current licensee holder had applied for renewal.“The matter was sub-judice. However, there his no stay on the auction of the restaurant. This is because there is no merit in the claims of the licensee. With fresh auction, there will be efficient revenue raising,” said another NDMC official.

Meanwhile, the council has roped in SBICap to be its transaction advisor for the auction of Taj Mansingh Hotel. It was given to Indian Hotels Company Ltd on lease for 33 years.