SEBI restrains Hotel Leelaventure from selling properties to Brookfield

Cash-strapped Hotel Leelaventure said on Wednesday that capital markets regulator SEBI had barred it from selling its four hotels and other assets to Canadian investment fund Brookfield Asset Management till further directions.

On March 18, Hotel Leelaventure Ltd. (HLVL) had announced the sale of its four hotels located in Bengaluru, Chennai, Delhi and Udaipur, as well as a property to Canadian investment fund Brookfield for Rs. 3,950 crore. It had sought shareholders’ approval and the voting is scheduled to end on April 24.

The Securities and Exchange Board of India (SEBI), in its letter to Hotel Leelaventure, said it had received representations from ITC, which had also moved the National Company Law Tribunal against Hotel Leelaventure alleging ‘oppression and mismanagement’, and minority shareholder Life Insurance Corporation (LIC).

Diversified group ITC has made certain allegations against Hotel Leelaventure, its promoters and JM Financial Asset Reconstruction Company Ltd., with regard to postal ballot notice seeking shareholders’ nod for the sale, the letter said.

‘In investors’ interest’

“While representations are being examined by SEBI, in view of paucity of time involved and in the interest of investors in securities, you are advised to ensure that none of the transactions proposed in the postal ballot notice dated March 18 is acted upon until further directions from SEBI,” the regulator told Hotel Leelaventure in the letter.

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