The Supreme Court has directed realty developer Lodha Developers, which acquired V Hotels Ltd through a resolution process under the Insolvency and Bankruptcy Code, 2016, to deposit Rs 520.80 crore as security in a legacy matter linked to the hospitality company’s former promoters.
The directive comes in relation to proceedings initiated by the Enforcement Directorate (ED) against the erstwhile promoters of V Hotels, the Kerkar family, in connection with alleged financial transactions involving the Cox & Kings group, the realty developer said in a regulatory intimation.
These funds, according to the intimation, were routed through V Hotels prior to the commencement of the Corporate Insolvency Resolution Process (CIRP).
Lodha Developers acquired V Hotels in 2024 under a resolution plan approved by the National Company Law Tribunal (NCLT). The company paid around Rs 890 crore to acquire the hotel property in Juhu, a tony suburb in western Mumbai. The bankrupt hotel company had admitted liabilities of over Rs 2,500 crore.
V Hotels, the owner of Tulip Star, previously known as the iconic Centaur Hotel, has a 6.1-acre land parcel on Juhu Tara Road in Mumbai’s western suburb Vile Parle. The existing property has around 367 keys with restaurants, large banquets, and a small retail component. However, the hotel is currently non-operational.
The acquisition and the plan’s terms including payments to various creditors were subsequently upheld by the Supreme Court on September 29, 2024, the intimation said.
The Bombay High Court ruled that proceedings could not be continued against V Hotels, as the transactions in question were carried out by the company’s former management and predated the CIRP.
This ruling was appealed to the Supreme Court, which has now decided that Lodha Developers will deposit Rs 520.80 crore, the maximum claim amount in the matter, as security. The Court clarified that upon making this deposit, there would be no further claim on V Hotels’ assets or properties in relation to the case.
Lodha Developers had first intimated the takeover of V Hotels on April 26, 2024. With the Supreme Court’s latest direction, the case enters a new phase focused on securing the liability while safeguarding the restructured company’s operations and assets.
The directive comes in relation to proceedings initiated by the Enforcement Directorate (ED) against the erstwhile promoters of V Hotels, the Kerkar family, in connection with alleged financial transactions involving the Cox & Kings group, the realty developer said in a regulatory intimation.
These funds, according to the intimation, were routed through V Hotels prior to the commencement of the Corporate Insolvency Resolution Process (CIRP).
Lodha Developers acquired V Hotels in 2024 under a resolution plan approved by the National Company Law Tribunal (NCLT). The company paid around Rs 890 crore to acquire the hotel property in Juhu, a tony suburb in western Mumbai. The bankrupt hotel company had admitted liabilities of over Rs 2,500 crore.
V Hotels, the owner of Tulip Star, previously known as the iconic Centaur Hotel, has a 6.1-acre land parcel on Juhu Tara Road in Mumbai’s western suburb Vile Parle. The existing property has around 367 keys with restaurants, large banquets, and a small retail component. However, the hotel is currently non-operational.
The acquisition and the plan’s terms including payments to various creditors were subsequently upheld by the Supreme Court on September 29, 2024, the intimation said.
The Bombay High Court ruled that proceedings could not be continued against V Hotels, as the transactions in question were carried out by the company’s former management and predated the CIRP.
This ruling was appealed to the Supreme Court, which has now decided that Lodha Developers will deposit Rs 520.80 crore, the maximum claim amount in the matter, as security. The Court clarified that upon making this deposit, there would be no further claim on V Hotels’ assets or properties in relation to the case.
Lodha Developers had first intimated the takeover of V Hotels on April 26, 2024. With the Supreme Court’s latest direction, the case enters a new phase focused on securing the liability while safeguarding the restructured company’s operations and assets.
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