Assets sale: SAT restrains Hotel Leela from announcing postal ballot results

The Securities Appellate Tribunal (SAT) on Friday restrained Hotel Leela Venture Ltd from declaring voting results on postal ballot resolutions, seeking approvals regarding assets sale to Brookfield Asset Management Inc.

The order has come on an appeal filed by FMCG major ITC related to the postal ballot.

Hotel Leela Venture had announced that voting would be conducted from August 18 to September 16, and the results on September 18.

In April, markets regulator Sebi restrained Hotel Leela from selling its four hotels and other assets to Brookfield in a Rs 3,950 crore deal till further orders.

On Friday, SAT restrained Hotel Leela from announcing the postal ballot results.

"We find that the result of the revised postal ballot notice is to be declared on the 18th September, 2019 at 11 am," the SAT said.

Citing the timeline for delivery of the judgement, the tribunal directed Hotel Leela Venture "not to declare the results of the postal ballot in question till we deliver the judgement".

The matter pertains to sale of assets by Hotel Leela to Brookfield, and certain concerns were raised by ITC and LIC about postal ballot notice in this regard.

In March, Hotel Leela announced sale of its four hotels located in Bengaluru, Chennai, Delhi and Udaipur, and a property Brookfield for Rs 3,950 crore.

The regulator had received complaints from ITC and LIC - minority shareholders in Hotel Leela - alleging violations by promoters and JMF ARC in respect of asset sale transaction mentioned in the postal ballot notice.

In July, Sebi directed Hotel Leela to make additional disclosures to its shareholders on sale of assets.