Hotel Leela gets stay against NDMC move

New Delhi: Hotel Leela Palace has secured a stay order from the Delhi High Court against New Delhi Municipal Council's move of attaching its bank account for not clearing property tax dues.

"The High Court of Delhi had stayed the recovery proceedings. At the last hearing held on January 13, 2015, the matter was adjourned to March 12, 2015 for arguments on merits. However, the order did not specifically mention that the interim order would continue.

"As NDMC initiated an action for attachment of bank account, the Company moved the High Court yesterday and the court has passed an order staying recovery till further orders," the hotel said in a clarification to the BSE.

NDMC had earlier this week claimed to have ordered attachment of the hotel's bank account for not clearing property tax dues of Rs 17 crore.

"The Delhi High Court has reaffirmed on Saturday that its earlier order issued on June 7, 2010, staying the NDMC's demand for property tax from The Leela Palace, New Delhi continues to be in effect.

"The question of the actual amount of property tax payable is currently sub judice. And, therefore, NDMC could not proceed with its proposed plans for the discontinuation of power and water to the hotel and freezing of the bank account. The hotel has continued to be fully operational with high occupancy levels," a spokesperson of the hotel said.

Source: http://zeenews.india.com/business/realestate/latest-news/hotel-leela-gets-stay-against-ndmc-move_118675.html