Sankalp Recreation, the losing bidder in the race to acquire Rajesh Lifespaces’ hotel business in Mumbai, has filed a petition with the National Company Law Tribunal (NCLT) opposing lenders’ decision to hand over the hotel to the Rare ARC-Naman Group consortium. In its petition, the Ahmedabad-based company has alleged that the consortium was given a “back door entry” after the initial challenge round in which they had bid individually. Sankalp operates a chain of restaurants and manufactures packaged foods.
In January, Sankalp Recreation emerged as the top bidder in the initial round to take over the hotel business of real estate company Rajesh Lifespaces, offering ₹250 crore over a span of three years to settle the total debt of ₹621 crore. Lenders to Rajesh Lifespaces later set a base price of ₹305 crore for a final auction of the hotel property.
Rajesh Lifespaces hotel business consists of a 316-room five-star hotel along with a commercial office building located in the Mumbai suburb of Kanjurmarg,Sankalp Recreation, Kolkata’s Shri Ram Multicom and Rare Asset Reconstruction Co were then the three bidders remaining in the race after 13 rounds of bidding.The three bidders offered plans which were evaluated by Resurgent Resolution Professionals, the valuer appointed by banks.
In March, the lenders voted for the Rare Asset Reconstruction Co and Naman Group consortium to take over the company’s defunct hotel business in Mumbai. The consortium offered ₹461 crore upfront in cash with another ₹31 crore in equity, Lenders have already submitted the plan to the National Company Law Tribunal (NCLT) for approval earlier this month.
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