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The Supreme Court has directed the ED to release 12 V Hotels properties, including the Centaur Hotel in Juhu, back to Lodha Developers, which acquired the company under NCLT-approved insolvency proceedings last year. Lodha had deposited INR 520.80 crore as a security, which the court ordered to be returned with interest. The ruling makes it clear that Lodha must have no connection to V Hotels' former promoters or proceeds from alleged crimes. Legal proceedings against the previous promoters will continue, while the decision highlights the protection for legitimate resolution applicants.
The Supreme Court of India has instructed the Enforcement Directorate (ED) to return 12 properties of V Hotels Ltd, including key land parcels in Maharashtra and the Centaur Hotel in Juhu, to Lodha Developers Ltd. The court noted that these assets had earlier been attached but replaced by a security deposit when Lodha's acquisition of V Hotels was approved through a resolution plan under the National Company Law Tribunal (NCLT) last year. Advertisement
Lodha Developers, previously known as Macrotech Developers Ltd, had successfully bid for V Hotels as part of insolvency proceedings. The Supreme Court emphasized that since the company acquired V Hotels legitimately under the insolvency framework, the properties should now be restored to Lodha. The decision also underlined that Lodha must remain fully separate from the former promoters of V Hotels and must not benefit from any proceeds linked to alleged crimes. Should any such connections emerge in the future, the ED retains the right to challenge the resolution or take further legal action.
The court directed that the security deposit of INR?520.80?crore deposited by Lodha, along with any interest accrued, must be returned within two weeks. At the same time, legal proceedings under the Prevention of Money Laundering Act (PMLA) against the former promoters and other individuals involved in V Hotels will continue. The ruling highlighted that the protection extended to Lodha is specific to the facts of this case and should not be seen as a general precedent for other acquisitions.
This order brings clarity to the rights of resolution applicants under insolvency law, showing that proper acquisitions are respected even when prior investigations exist. By returning V Hotels' assets to Lodha, the Supreme Court reinforced the principle that a newly acquired company should not be penalized for the actions of its previous promoters, while still ensuring accountability through conditions preventing any misuse of prior assets.
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