The Mumbai bench of the National Company Law Tribunal (NCLT) has directed market regulator, Securities and Exchange Board of India (SEBI), to conclude its investigation in the proposed sale of Hotel Leela Venture's several assets to Brookfield by the next hearing on 8th July.
The bankruptcy case was initiated by JM Financial Asset Reconstruction Company (ARC) against Hotel Leela Venture, while SEBI is carrying out the investigations on the proposed sale based on complaints from minority shareholders ITC and State-run Life Insurance Corporation (LIC).
The counsel for Hotel Leela Venture requested that the hearing be adjourned for four months as SEBI's probe is underway.
Hotel Leela Venture had, in March, announced its binding agreement with a Brookfield Asset Management (Brookfield)-sponsored private real estate fund to sell four Leela-owned hotels located at Bengaluru, Chennai, Delhi and Udaipur and its property in Agra.
ITC moved the NCLT against Leela in April alleging 'oppression and mismanagement', claiming that the deal between Leela and Brookfield was against the company's and shareholders' interests.
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