Supreme Court Directs ED to Release ₹4,000 Crore V Hotels Properties to Lodha Developers, Including Iconic Juhu Centaur Hotel

In a landmark legal verdict, the Supreme Court of India has reportedly ordered the Enforcement Directorate (ED) to release 12 properties belonging to corporate debtor V Hotels to Lodha Developers, now known as Macrotech Developers. The assets, valued at approximately ₹4,000 crore, include several prominent land parcels across Maharashtra and the iconic Centaur Hotel in Juhu, Mumbai. This ruling represents a significant milestone in the corporate insolvency resolution process and opens the door to potential large-scale redevelopment of these prime real estate assets.

How Lodha Developers Acquired V Hotels Through Insolvency

According to reports, Lodha Developers had emerged as the successful resolution applicant for V Hotels in 2024, following approval of its ₹890 crore resolution plan by the National Company Law Tribunal (NCLT). V Hotels, formerly operating under the name Tulip Hospitality Services, had reportedly declared admitted liabilities exceeding ₹2,500 crore at the time of proceedings.

The company had earlier secured acquisition of Mumbai's iconic Tulip Star Hotel through this process. In compliance with a Supreme Court directive issued in July 2025, Lodha Developers had reportedly deposited ₹520.8 crore as security to facilitate the release of the attached properties from ED control.

Key Highlights of the Supreme Court Ruling

A bench led by Justice M M Sundresh reportedly issued a consent order directing that the properties, which had been under ED attachment, be restored to the successful resolution applicant in accordance with the Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code (IBC).

Conditional Safeguards Under Section 32A

The Court has reportedly added conditional safeguards under Section 32A of the IBC, which include the following provisions:

• Protection under Section 32A would be applicable only if Lodha Developers is not connected to the previous management of V Hotels
• The company must also not be a beneficiary of proceeds from the alleged financial misconduct under investigation
• If these conditions are violated, the ED retains the right to challenge the resolution plan or pursue further legal action

Enforcement Directorate's Stand on Economic Offence

The Enforcement Directorate had reportedly argued in court that the case involves a significant economic offence, with alleged ill-gotten gains estimated at ₹520.80 crore. The agency maintained that its actions were aimed at recovering assets linked to suspected financial irregularities committed by the previous promoters of V Hotels. Similar ED property attachments in major real estate cases have been witnessed in recent years across the country.

Implications for Mumbai's Real Estate Market

This decision reportedly allows Lodha Developers to gain possession of strategic real estate assets, including high-value land parcels and hotel properties across Mumbai and Maharashtra. The verdict is expected to unblock significant redevelopment and monetisation opportunities, particularly at prime locations like Juhu, which has seen a real estate surge in recent times.

Industry observers believe these assets could potentially be transformed into large-scale commercial or residential projects, contributing to Mumbai's ongoing redevelopment drive. The Macrotech Developers' ambitious sales targets could receive a significant boost with the addition of these premium assets to their portfolio.

Legal Precedent for IBC Resolution Framework

The ruling reportedly sets a legal precedent for how Section 32A protections under the IBC can shield resolution applicants from historical liabilities, provided they maintain legal and financial independence from the defaulting promoters. This verdict reinforces the sanctity of the corporate insolvency resolution framework when untainted buyers take control of stressed assets.

Key Transaction Details at a Glance

What Lies Ahead

While the Supreme Court has reportedly paved the way for Lodha Developers to take control of the V Hotels assets, the ED's ongoing investigations will continue. If any connection to financial misconduct or previous management is established, the agency may seek to challenge the resolution plan in the future.

For now, however, the order reportedly offers a clear path for asset transfer, unlocking redevelopment potential and reinforcing the legal framework that protects legitimate buyers in the Indian real estate sector. This development could also encourage more investors to participate in resolution processes for stressed assets, knowing that legal protections exist for genuine acquirers.

Disclaimer: This article is intended for informational purposes only. Readers are advised to verify facts independently and consult legal and financial experts before making any investment decisions. The information presented here is based on publicly available reports and does not constitute legal or financial advice.