Lodha Developers to deposit ₹520 cr as security in case against VHL

Lodha Developers Ltd has been directed to deposit ₹520.80 crore as security in relation to an ongoing case in the Supreme Court against V Hotels Ltd, which the company acquired last year through an insolvency process.

In a regulatory filing on Wednesday, Lodha Developers Ltd informed that this matter is related to proceedings initiated by the Enforcement Directorate (ED) against the erstwhile promoter of V Hotels Ltd (VHL). This was in relation to a transaction of ₹520.80 crore, allegedly routed through VHL before the start of the insolvency process.

Lodha expects that the matter will be heard expeditiously in the apex court and the deposit will be released.

In April last year, Lodha Developers Ltd announced the takeover of VHL through the Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code 2016.

In the filing, the company said it acquired VHL in 2024 and paid the consideration to various creditors based on the approved resolution plan. The approval of the resolution plan was also upheld by the Supreme Court vide its order dated September 29, 2024.

"This intimation is related to proceedings initiated by the Enforcement Directorate against the erstwhile promoter of VHL - Kerkar family in relation to their transactions in Cox & Kings group to the tune of ₹520.80 crore, allegedly routed through VHL before the commencement of CIRP," Lodha Developers said.

The matter was heard by the Bombay High Court, and it was held that the proceedings cannot be continued against VHL since the issue relates to actions of the erstwhile promoters prior to the commencement of CIRP.

"The appeal against this order was heard by the Supreme Court, and it has been decided that Lodha Developers will deposit a sum of ₹520.80 crore as security since this is the maximum claim in the matter. Upon this deposit, there is no other claim on VHL's properties or other assets. We expect the matter to be expeditiously heard and the deposit to be released in due course," the filing said.

In April last year, Lodha Developers had said VHL has real estate assets which can be developed for residential and allied uses.

"Under the said resolution plan, the company will pay ₹900 crore in tranches over a period of 270 days," the company had said.

Lodha Developers, erstwhile Mactotech Developers Ltd, is one of the leading real estate firms in the country. It has a strong presence in the Mumbai Metropolitan Region (MMR) and Bengaluru markets.