Delhi HC upholds NDMC decision ending licence agreement with Bharat Hotels

The land in question was allotted to NDMC by the government of India in 1973 as part of a plan to redevelop the area and it was envisaged that a portion of it would be used for the construction of a 5-star hotel. On April 22, 1982, a licence deed was executed between the NDMC and the Bharat Hotels for construction and commissioning of a 5-star hotel and two commercial towers for a term of 99 years, with the licence fee fixed at Rs 1.45 crore per annum. Considering that the licence agreement provided for a revision in the licence fee after 33 years, the NDMC ordered a valuation of the hotel property and accordingly issued the notice of demand seeking Rs 10,63,74,59,852 from Bharat Hotels in three equal instalments within 90 days.