The Supreme Court on Wednesday directed Lodha Developers, which acquired V Hotels Ltd through the insolvency process, to deposit Rs 520.8 crore within four weeks to vacate the Enforcement Directorate's (ED) attachment of land parcels worth Rs 4,000 crore.
The court was hearing the ED’s appeal against a Bombay High Court order that had quashed its money laundering case against V Hotels and set aside the provisional attachment of 12 of its properties in Mumbai.
The matter stems from ED’s action against V Hotels, owner of Tulip Star, formerly known as the iconic Centaur Hotel in Juhu. The agency had provisionally attached properties across Juhu and Malad in April 2025, after V Hotels underwent corporate insolvency resolution. The ED claimed the attached land and immovable assets were linked to alleged proceeds of crime, despite a change in ownership following a resolution plan approved under the Insolvency and Bankruptcy Code (IBC).
In November 2023, the Bombay High Court quashed the ED’s proceedings and said the agency's attachment was unsustainable once the resolution plan had been approved and implemented.
“Once a resolution plan is approved under the IBC and a change in the company's management is effective, the property of the corporate debtor would also get immunity from further prosecution of proceedings,” the High Court had said.
It had further stated, “Once the law is clear, the ED's attachment, either provisionally or otherwise, cannot continue even for a day longer after the approval of the resolution plan.”
The corporate insolvency resolution plan for V Hotels was approved by the National Company Law Tribunal (NCLT) on April 26, 2023. Macrotech Developers (Lodha Group), which acquired V Hotels under the plan, had paid Rs 520 crore for the properties. The ED, however, maintained that the assets represented proceeds of crime and should be attached in the new form as well.
The court was hearing the ED’s appeal against a Bombay High Court order that had quashed its money laundering case against V Hotels and set aside the provisional attachment of 12 of its properties in Mumbai.
The matter stems from ED’s action against V Hotels, owner of Tulip Star, formerly known as the iconic Centaur Hotel in Juhu. The agency had provisionally attached properties across Juhu and Malad in April 2025, after V Hotels underwent corporate insolvency resolution. The ED claimed the attached land and immovable assets were linked to alleged proceeds of crime, despite a change in ownership following a resolution plan approved under the Insolvency and Bankruptcy Code (IBC).
In November 2023, the Bombay High Court quashed the ED’s proceedings and said the agency's attachment was unsustainable once the resolution plan had been approved and implemented.
“Once a resolution plan is approved under the IBC and a change in the company's management is effective, the property of the corporate debtor would also get immunity from further prosecution of proceedings,” the High Court had said.
It had further stated, “Once the law is clear, the ED's attachment, either provisionally or otherwise, cannot continue even for a day longer after the approval of the resolution plan.”
The corporate insolvency resolution plan for V Hotels was approved by the National Company Law Tribunal (NCLT) on April 26, 2023. Macrotech Developers (Lodha Group), which acquired V Hotels under the plan, had paid Rs 520 crore for the properties. The ED, however, maintained that the assets represented proceeds of crime and should be attached in the new form as well.
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