New Delhi Municipal Council in soup again, this time over The Lalit

After the Le Meridien fiasco, the New Delhi Municipal Council (NDMC) is once again in the line of fire because of another five-star hotel in Lutyens' Delhi, The Lalit. In a letter sent to the Central Vigilance Commission (CVC) earlier this month, the Ministry of Home Affairs (MHA) has asked the civic body's Chief Vigilance Officer (CVO) to submit a report regarding the delay in the revision of license fee of the hotel, and whether there was a revenue loss to the NDMC on this account.

The NDMC revised the license fee of two five-star hotels in April this year, three years after the expiry of the first term. According to the license deed under the NDMC Act, the civic body is required to renew the license fee every 33 years. In case of The Lalit and Le Meridien, this period of 33 years expired in March, 2014.

The letter, dated August 4, a copy of which is with DNA, read that the civic body must refer to the ministry's letter, directing to "furnish information concerning delay in processing enhancement of license fee of the Bharat Hotel Limited (The Lalit)".

In the letter, the ministry has asked the civic body to "fix responsibility on officials who did not process the file, in time, to revise the license fee and the details of the officials responsible on whom action has been initiated".

The Home Ministry, under which the NDMC functions, has also asked the corporation to mention in the report why there was an enormous delay in revising the license fee, after the expiry of its first term.

It also stated that the civic body must assess whether there was revenue loss during this period, and if so, the approximate amount of the loss.

The ministry further pulled up the civic body for not paying heed to its previous letters and for not providing the requisite information till the issuance of this letter.

The NDMC had scrapped Le Meridien's license in March this year for not paying dues amounting to nearly Rs 520 crore.