On February 13, 2020, the NDMC had issued a demand notice to Bharat Hotels for Rs 1063.74 crore as arrears of licence fee at the rate of Rs 98 crore per annum, with retrospective effect from March 2014. (File Photo)In a setback for Bharat Hotels, which goes by the brand name of ‘The Lalit’, the Delhi High Court on Wednesday cleared the path for New Delhi Municipal Council (NDMC) to revive a demand of over Rs 1,000 crore as arrears from the hospitality group for its luxury hotel located on Barakhamba Road in Central Delhi.With this, a division bench of Chief Justice DK Upadhyaya and Justice Tushar Rao Gedela, on April 22, overturned a single-judge’s decision from December 2023.On February 13, 2020, the NDMC had issued a demand notice to Bharat Hotels for Rs 1063.74 crore as arrears of licence fee at the rate of Rs 98 crore per annum, with retrospective effect from March 2014. The same day, the NDMC also communicated that a licence deed in favour of Bharat Hotels – dated April 22, 1982 – for a plot measuring 6.058 acre on Barakhamba Lane has been terminated with immediate effect.In December 2023, a single judge had quashed both of NDMC’s action – termination of license deed as well as the demand notice. The NDMC had then appealed against the verdict before a division bench of the HC.The demand notice was issued by the NDMC following a string of alleged violations of licence conditions by the hotel, which was granted the licence of the land to develop a five-star hotel in preparation for the Asian Games.Initially, the licence granted for 99 years had fixed the fee at Rs 1.45 crore per year. The conditions included that the licence fee will be enhanced after every 33 years, with the increase in the fee each time not exceeding 100%. This would mean the licence fee as on 2014 would be revised maximum to Rs 2.9 crore.Also Read | From Asian Games to G20 Summit, how major international events have shaped Delhi through the yearsThe licensee could also issue sub-licence for specific purposes like setting up parking, banks and shopping arcade, among others, but it is the licensee who shall be responsible in case of any infraction.In 2016, one of the sub-licensee attempted to sell the office space in the premises to one Indian Wind Power Association. However, the agreements to sale were withdrawn in 2018 after it came to the government’s notice.Story continues below this adEventually, by 2020, the demand notice and the termination of the licence deed was set aside by the single judge.Following this, the Ministry of Housing and Urban Affairs, through its Land and Development Office (L&DO), issued a demand notice to the NDMC, requiring it to pay Rs 98 crore per year as ground rent. The L&DO reasoned that the Union government had allotted the land to NDMC in 1983.The NDMC, in turn, justified the 2020 demand notice on the ground that the licence revenue earned is “exceedingly meagre” if licensee fee is not enhanced in terms of market value, which is against public interest.The division bench, in its ruling, has factored in the public interest. “There cannot be any doubt that land in New Delhi is one of the scarcest natural resource, which has been put to management by the owner of the land, namely, L&DO, to the NDMC and accordingly, if any transaction in respect of such a land is resulting in such a huge loss to NDMC, the burden gets transferred to the taxpayer, who are the residents of New Delhi. Such a transaction, in our opinion, cannot be approved of, else it will be violative of Article 14 (equality) of the Constitution of India,” the court held.This was after factoring in the “huge difference” – the amount of annual license fee to be paid by Bharat Hotels, which is Rs 2.9 crore annually, and the Rs 98 crore the Centre is demanding from NDMC.Sohini Ghosh is a Senior Correspondent at The Indian Express. Previously based in Ahmedabad covering Gujarat, she recently moved to the New Delhi bureau, where she primarily covers legal developments at the Delhi High Court Professional Profile Background: An alumna of the Asian College of Journalism (ACJ), she previously worked with ET NOW before joining The Indian Express. Core Beats: Her reporting is currently centered on the Delhi High Court, with a focus on high-profile constitutional disputes, disputes over intellectual property, criminal and civil cases, issues of human rights and regulatory law (especially in the areas of technology and healthcare). Earlier Specialty: In Gujarat, she was known for her rigorous coverage in the beats of crime, law and policy, and social justice issues, including the 2002 riot cases, 2008 serial bomb blast case, 2016 flogging of Dalits in Una, among others. She has extensively covered health in the state, including being part of the team that revealed the segregation of wards at the state’s largest government hospital on lines of faith in April 2020. With Ahmedabad being a UNESCO heritage city, she has widely covered urban development and heritage issues, including the redevelopment of the Sabarmati Ashram Recent Notable Articles (Late 2025) Her recent reporting from the Delhi High Court covers major political, constitutional, corporate, and public-interest legal battles: High-Profile Case Coverage She has extensively covered the various legal battles - including for compensation under the aegis of North East Delhi Riots Claims Commission - pertaining to the 2020 northeast Delhi riots, as well as 1984 anti-Sikh riots. She has also led coverage at the intersection of technology and governance, and its impact on the citizenry, from, and beyond courtrooms — such as the government’s stakeholder consultations for framing AI-Deepfake policy. Signature Style Sohini is recognized for her sustained reporting from courtrooms and beyond. She specialises in breaking down dense legal arguments to make legalese accessible for readers. Her transition from Gujarat to Delhi has seen her expand her coverage on regulatory, corporate and intellectual property law, while maintaining a strong commitment to human rights and lacuna in the criminal justice system. X (Twitter): @thanda_ghosh ... Read More © The Indian Express Pvt LtdTags:legal news india