Goa, April 28 -- The long-running dispute over a prime hotel property at Barakhamba Lane in New Delhi has taken a decisive turn after an appellate court upheld the New Delhi Municipal Council's (NDMC) demand of over Rs.1,063 crore and restored the termination of Bharat Hotels' 1982 licence agreement.

The land, originally allotted to NDMC by the Government of India in 1973 for redevelopment, included a portion earmarked for a five-star hotel project. In 1982, NDMC entered into a 99-year licence agreement with Bharat Hotels for the development and operation of a hotel and commercial towers on the site at an annual licence fee of Rs.1.45 crore. The agreement provided for a revision of fees after 33 years.

Following a valuation exercise, ND...