A minority shareholder, LIC of India has also raised objection on the deal with SEBI. ITC Ltd., holds 7.92% stake in Hotel Leelaventure Ltd. and LIC of India Future Plus Growth fund holds 2.36% stake in the company.

THE SECURITIES & Exchange Board of India (SEBI) in a letter to Hotel Leelaventures has directed to put on hold all processes to sell its hotels and land to Canada-based real estate fund, Brookfield. The direction has come in the wake of serious allegations by ITC Ltd., and LIC of India on “oppression and mismanagement” about the deal.

 ITC Ltd. has already moved the National Company Law Tribunal (NCLT) on the issue.

 A minority shareholder, LIC of India has also raised objection on the deal with SEBI. ITC Ltd., holds 7.92% stake in Hotel Leelaventure Ltd. and LIC of India Future Plus Growth fund holds 2.36% stake in the company.  

“While representations are being examined by SEBI, in view of the paucity of time involved and in the interest of the 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,” Securities regulator SEBI said in its letter restraining the Hotel company. 

Hotel Leelaventure Ltd., on March 18, had announced sale of its four hotels in Bengaluru, Delhi, Chennai and Udaipur as well as land its possession in Agra to Brookfield for Rs 3,950 cr.