NEW DELHI: Lodha Developers Ltd has been instructed to deposit ₹520.80 crore as security related to an ongoing Supreme Court case against V Hotels Ltd, which the company acquired last year through insolvency proceedings.
In a regulatory filing on Wednesday, Lodha revealed that this issue concerns proceedings initiated by the Enforcement Directorate (ED) against the former promoter of V Hotels Ltd (VHL) regarding a transaction of ₹520.80 crore, allegedly funneled through VHL before the onset of the insolvency process.
Lodha anticipates that the Supreme Court will expedite the hearing in this matter, leading to the release of the deposit.
In April last year, Lodha announced the takeover of VHL via the Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code of 2016.
The company stated in its filing that it acquired VHL in 2024, settling with various creditors per the approved resolution plan, which was subsequently upheld by the Supreme Court on September 29, 2024.
“This notification pertains to proceedings initiated by the Enforcement Directorate against the former promoter of VHL – the Kerkar family, concerning their transactions with the Cox & Kings group amounting to ₹520.80 crore, allegedly routed through VHL prior to the commencement of the CIRP,” Lodha mentioned.
The Bombay High Court reviewed the case and determined that proceedings could not continue against VHL, as the issue relates to actions taken by the former promoters prior to the initiation of CIRP.
“The Supreme Court heard the appeal against this order and ruled that Lodha Developers will deposit ₹520.80 crore as security, as this is the maximum claim in the matter. Following this deposit, there will be no further claims on VHL’s properties or assets. We expect the case to be addressed promptly, allowing for the release of the deposit in due time,” the filing added.
Lodha had earlier indicated that VHL possesses real estate assets suitable for development relating to residential and allied uses.
Under the resolution plan, the company will disburse ₹900 crore in installments over a period of 270 days.
Lodha Developers, formerly known as Mactotech Developers Ltd, is a prominent real estate firm in India, with a significant presence in the Mumbai Metropolitan Region (MMR) and Bengaluru.
