Hotel Leela Ventures was going through a severe cash-crunch and defaulted in payment of quarterly interest of Rs 2.12 crore to Life Insurance Corporation of India (LIC). Other than LIC, the company has also defaulted to serve repayment of its other term loans and NCDs due to a shortage of funds. As a result, the company planned to sell its Bengaluru, Chennai, New Delhi, and Udaipur and Agra property to Canada's real estate fund Brookfield Asset Management in a slump sale.

To work out the deal the Leela sought shareholder permission via postal ballot. Voting started on March 26 and closed on April 24. But ITC complained to NCLT that the Leela-Brookfield deal is a clear case of “oppression and mismanagement”. Even LIC reported to the Securities and Exchange Board of India (SEBI) that Leela-Brookfield deal is only in favors Promoter and ignores the interest of minority shareholder. As a result, the deal is now on hold.



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