Supreme Court Orders ED to Release V Hotels Assets Worth ₹4,000 Crore to Lodha Developers
Apex Court Directs Refund of ₹520.80 Crore Deposit with Interest to Lodha
Judges Clarify Insolvency Resolution Rights Cannot Be Blocked by Attachment Proceedings
By Our Legal Correspondent
New Delhi: November 29, 2025:
In a landmark judgment, the Supreme Court of India has directed the Enforcement Directorate (ED) to release assets of V Hotels Ltd, including the prime Centaur Hotel (Tulip Star) in Juhu, Mumbai, to Lodha Developers Ltd (formerly Macrotech Developers Ltd). The Court also ordered the ED to refund ₹520.80 crore along with accrued interest to Lodha within two weeks.
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The ruling, delivered on November 11, 2025, by a bench of Justices M.M. Sundresh and Satish Chandra Sharma, provides major relief to Lodha Developers, which acquired V Hotels through the Corporate Insolvency Resolution Process (CIRP) in 2024.
Background of the Case
- V Hotels Ltd, once owned by the Kerkar family, faced insolvency proceedings after defaulting on debts.
- Lodha Developers emerged as the successful resolution applicant, acquiring V Hotels for ₹890 crore under the CIRP.
- Meanwhile, the ED had attached 12 properties of V Hotels, including land parcels and the Centaur Hotel, valued at nearly ₹4,000 crore, as part of its probe into alleged money laundering by the former promoters.
- In July 2025, the Supreme Court had directed Lodha to deposit ₹520.80 crore with the ED as security.
The latest ruling now restores Lodha’s ownership rights over the assets and ensures the return of the deposited amount.
Supreme Court’s Observations
The Court made several important observations:
- Resolution applicants’ rights must be protected: Lodha, as the bona fide resolution applicant, cannot be deprived of assets acquired through insolvency.
- ED’s attachment cannot override insolvency law: The Insolvency and Bankruptcy Code (IBC) ensures that successful bidders gain clear ownership of assets.
- Refund of deposit: The Court ordered the ED to return the ₹520.80 crore deposit with interest, recognizing Lodha’s legitimate claim.
- No ties to former promoters: The ruling clarified that Lodha has should have no connection with the Kerkar family or alleged proceeds of crime.
Wider Legal Context
This judgment strengthens the IBC framework and clarifies the relationship between insolvency proceedings and enforcement actions:
- IBC vs. PMLA: The ruling establishes that insolvency resolution under the IBC cannot be frustrated by attachments under the Prevention of Money Laundering Act (PMLA).
- Investor confidence: The decision reassures investors that assets acquired through insolvency will not be jeopardized by parallel enforcement actions.
- Judicial consistency: The Court has previously emphasized protecting resolution applicants to ensure the success of insolvency processes.
Impact on Lodha Developers
The ruling has significant implications for Lodha Developers:
- Financial relief: Lodha will receive back ₹520.80 crore plus interest, strengthening its liquidity.
- Asset ownership restored: Lodha now has full rights over V Hotels’ properties, including the Centaur Hotel.
- Market confidence: The ruling boosts investor confidence in Lodha, which has already reported strong financial results, including an 87% jump in Q2 FY26 profit.
Broader Implications for Real Estate and Insolvency
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- Boost for real estate sector: The ruling ensures smoother resolution of distressed assets, encouraging more developers to participate in insolvency auctions.
- Protection for bidders: Resolution applicants can now bid with greater confidence, knowing their ownership rights will be upheld.
- Clarity for regulators: The judgment provides guidance on balancing insolvency law with enforcement actions under PMLA.
Reactions from Experts
Legal and market experts have welcomed the ruling:
- Corporate lawyers: They see it as a precedent-setting judgment that strengthens the IBC framework.
- Market analysts: They believe the ruling will encourage more participation in insolvency resolutions, boosting the real estate sector.
- Investor advocates: They note that the judgment protects bidders from uncertainty, ensuring fair treatment in insolvency cases.
Conclusion
The Supreme Court’s order directing the ED to release V Hotels’ assets to Lodha Developers and refund ₹520.80 crore with interest is a landmark in India’s insolvency and enforcement jurisprudence. By clarifying that insolvency rights cannot be blocked by attachment proceedings, the Court has reinforced investor confidence and strengthened the IBC framework.
For Lodha Developers, the ruling restores ownership of prime assets and provides significant financial relief. For India’s real estate and insolvency ecosystem, it sets a precedent that will encourage transparency, accountability, and investor participation.
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