The regulating body Securities Exchange Board of India (SEBI) has barred the cash-crunched Hotel Leelaventure from selling its four hotels and a property to Canadian investment fund Brookfield Asset Management.
Earlier, on March 18, the Hotel Leelaventure Ltd (HLVL) had announced its decision to sell its four hotels each located in Chennai, Udaipur, Bengaluru and Delhi and a property to Canadian investment fund Brookfield Asset Management for Rs 3,950 crores and accordingly it had sought its shareholders approval and voting for the same is scheduled to end on April 24, 2019.
In its letter to Hotel Leelaventure, the regulator has stated that it has received representations from the India Tobacco Company Limited (ITC) which has also moved to the National Company Law Tribunal against Hotel Leelaventure alleging "oppression and mismanagement" and minority shareholder Life Insurance Corporation (LIC).
In a regulatory filing, Hotel Leelaventure said "Representations/allegations against HLVL, as received by SEBI in relation to the issue, concerns the interest of the investors in the security market. While representations are being examined by SEBI, in the 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 are acted upon till further directions from SEBI."