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National Company Law Tribunal has approved a resolution plan worth INR 730 crore for Rajesh Business & Leisure Hotels Pvt Ltd, enabling the revival of a stalled hospitality project in Mumbai. The plan, submitted by a consortium of Rare Asset Reconstruction Company and Check-Inn Hotels (a subsidiary of Shree Naman Group), received unanimous approval from the Committee of Creditors. The company had been undergoing insolvency proceedings since 2022 following a loan default. The approved plan provides for settlement of creditor dues, infusion of fresh capital, and completion of the long-delayed hotel project. The decision concludes a prolonged insolvency process and allows transfer of control to the successful resolution applicants.
National Company Law Tribunal has approved a resolution plan valued at INR 730 crore for Rajesh Business & Leisure Hotels Pvt Ltd, facilitating the revival of a stalled hotel development in Mumbai, according to developments reported in the past week. Advertisement
The approval pertains to a plan submitted by a consortium comprising Rare Asset Reconstruction Company and Check-Inn Hotels Pvt Ltd, a subsidiary of the Shree Naman Group. The resolution proposal had secured 100% voting approval from the Committee of Creditors (CoC), following a competitive bidding process conducted under the Insolvency and Bankruptcy Code.
The hospitality company had been admitted into the corporate insolvency resolution process in 2022 after a petition filed by ICICI Bank over a loan default. The project, located at Kanjurmarg in Mumbai, remained incomplete for several years due to financial constraints and cost overruns, despite earlier branding associations with international hotel operators.
Under the approved plan, approximately INR 461 crore has been earmarked for settlement of dues to secured financial creditors, while around INR 6 crore will be allocated to operational creditors, including employees and statutory authorities. The plan also provides for priority payment of insolvency resolution process costs.
In addition to debt resolution, the successful resolution applicants have proposed an infusion of nearly INR 250 crore towards working capital and capital expenditure to complete the project and operationalise the hotel. The tribunal observed that the plan includes provisions for implementation, restructuring of the corporate debtor, and oversight mechanisms through a monitoring framework.
The tribunal noted that the resolution plan meets the statutory requirements under Section 30(2) of the Insolvency and Bankruptcy Code and does not contravene any provisions of the law. It reiterated that the commercial wisdom of the Committee of Creditors is paramount in evaluating and approving resolution plans, with limited scope for judicial intervention.
The approval also brings to a close a prolonged legal and insolvency process, which had seen earlier challenges and delays before reaching final clearance. With the plan now approved, the moratorium imposed during the insolvency proceedings stands lifted, and control of the company is to be transferred to the successful resolution applicants for implementation of the revival strategy.
The project, situated on a freehold land parcel in Kanjurmarg, had been under development for over a decade but remained incomplete due to funding challenges and changes in operating partnerships. The approved resolution is expected to enable completion of construction and commencement of operations.
The transaction reflects continued activity under India’s insolvency framework, where asset reconstruction companies and real estate developers are participating in the acquisition and revival of distressed hospitality and real estate-linked assets.
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