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Lodha Developers Ltd. has been directed by the Supreme Court to deposit INR 520.80 crore as security in a case involving V Hotels Ltd, which Lodha acquired through an insolvency process in 2024. This matter relates to Enforcement Directorate (ED) proceedings against V Hotels' former promoter, concerning transactions allegedly routed through the company before insolvency. The Bombay High Court previously ruled that proceedings could not continue against V Hotels due to the timing of the alleged transactions relative to the insolvency. Lodha expects a swift Supreme Court hearing, anticipating the deposit's release, after which no further claims will stand against V Hotels' assets.
Lodha Developers, formerly Macrotech Developers Ltd, has been directed to deposit a sum as security in relation to an ongoing case before the Supreme Court. The company made this information public today in a regulatory filing. This legal matter links to proceedings initiated by the Enforcement Directorate (ED) against the former owner of V Hotels Ltd (VHL), a company Lodha acquired. Advertisement
The security amount to be deposited is INR 520.80 crore. Lodha Developers Ltd acquired VHL in 2024. This acquisition occurred through the Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code (IBC) 2016. In its filing, Lodha stated it paid consideration to various creditors based on the approved resolution plan for VHL.
The Supreme Court had upheld this resolution plan by an order dated September 29, 2024. The core of the matter centers on ED proceedings against the erstwhile promoter of VHL, the Kerkar family. These proceedings concern transactions amounting to INR 520.80 crore, which were allegedly routed through VHL before the commencement of CIRP. This figure represents the maximum claim in the matter.
Earlier, the Bombay High Court had ruled that the proceedings against VHL could not continue, explaining that the issue related to actions of the erstwhile promoters prior to the start of CIRP. However, the Supreme Court heard an appeal against this Bombay High Court order. The apex court has now decided that Lodha Developers will deposit the sum of INR 520.80 crore as security.
Once this deposit is made, no other claim will stand against VHL's properties or other assets. Lodha expects the matter to be heard quickly in the apex court, anticipating the deposit's release in due course. In April last year, Lodha Developers had stated that VHL possesses real estate assets suitable for residential and allied uses. Under the approved resolution plan, Lodha was to pay INR 900 crore in parts over a period of 270 days for VHL's acquisition.
This case highlights the complexities that can arise after acquiring companies through insolvency, particularly when previous owners face money laundering allegations, requiring judicial security to protect the acquired assets.
Source: PTI
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