Hyatt shutdown fallout: 2 independent directors of Asian Hotels West resign

Raj Kumar Bhargava and Lalit Bhasin cite refusal of Chairperson to convene Board meeting to discuss acute financial crises of the company

Days after Hyatt Regency shut its Mumbai property owing to a financial cruch, its asset owner Asian Hotels (West) announced that Raj Kumar Bhargava and Lalit Bhasin resigned as Independent Directors of the company with effect from June 8.

Hyatt was managing the property in Mumbai on a contract basis on behalf of Asian Hotels. 

"I have been constrained to take this extreme step due to failure and refusal on the part of the Chairperson to convene a Board meeting to discuss the acute financial crises which the company is facing," said Lalit Bhasin.

"There is an atmosphere of hostility among the promoters and I do not wish to remain a part of this environment any longer," he further said.

Raj Kumar Bhargava on the hand said that he sees no future as no funds are coming from promoters.

"I have resigned as the hotel run by Asian Hotel has stopped functioning due to lack of finances with no funds coming from the pro motors I do not see any future. Also despite repeated request the Chairperson did not respond to a discussion on the financial problems of the company. As such my usefulness to the company is no longer seen," Bhargava said.

The five star property had on June 7 issued a notice informing the staff on its roll that no funds are being infused from the property owner to meet the operational expenses of the hotel including payment of salaries. The hotel, therefore, has to be closed until further notice.