sebi:Order/SV/DP/2024-25/30287
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Facts / Headnote
Violations of Regulation 30(7) established and penalty of Rs.6,00,000 imposed; charge under Regulation 30(6) not established.
Provisions invoked
- s. 15A
- s. 15
- s. 15J
- s. 28A
- s. 15E
Regulations
- Reg. 30
- Reg. 30(7)
- Reg. 4(1)
- Reg. 4(1)(d)
- Reg. 30(6)
- Reg. 66
Parties
- Asian Hotels North Limited
Holding
The Noticee violated Regulation 30(7) read with Regulation 4(1)(d), (e) and (h) by delayed disclosure of ICA signing and non-disclosure of loan recall, NPA declaration and related litigation, while violation of Regulation 30(6) read with Schedule III Part A Para A clause 9(iv) for OTR approval was not established, and a monetary penalty of Rs.6,00,000 under Section 15A(b) was imposed.
Full text
Adjudication Order in the matter of Asian Hotels North Limited Page 2 of 21 provisions of the Section 15A(b) of the SEBI Act, for the following violations alleged to have been committed by the Noticee: a. Regulation 30(7) read with Regulation 4(1)(d),(e) and (h) of LODR Regulations (Para 3(i) of the extant order) b. Regulation 30 (6) read with Schedule III – Part A: Para A clause 9 (iv) of LODR Regulations (Para 3(j) of the extant order) c. Regulation 30(7) read with Regulation 4(1) (e) and (h) the LODR Regulations (Para 3(k) of the extant order)
Adjudication Order in the matter of Asian Hotels North Limited Page 3 of 21 c. Further, the Noticee vide its announcement dated July 06, 2021 disclosed the approval and implementation of the One Time Restructuring for credit facilities by Lenders which was availed by the Company, including Yes Bank and Bank of Maharashtra. d. Subsequently, the Noticee and its lenders executed the Master Amendment Agreement in June 2021. The Master Amendment Agreement formed an integral part of the OTR scheme which laid down the amended terms based on which the loan facilities were availed by the Noticee, as per the OTR Scheme. Clause 2.1.1 of the Master Amendment Agreement imposed a moratorium on any instalments due and payable by the Company to lenders for the period between September 1, 2020 and March 30, 2022. e. Further, Yes Bank had issued a Loan Recall Notice dated 17.02.2022 against the Noticee, and declared the Noticee’s account as NPA with effect from 20.12.2020. The Noticee assailed this action of Yes Bank before Hon’ble Delhi High Court vide CS (COMM) No. 128/2022 (the ‘Suit’). After hearing both the parties, Hon’ble Delhi High Court vide order dated 24.02.2022 restrained Yes Bank from acting upon the said Notice and stayed the purported default of the Company based on which Yes Bank declared the Company’s accounts as Non Performing Asset. This interim order is in force as on date. f. Vide orders dated 02.03.2023 and 03.03.2023, Hon’ble Delhi High Court has impleaded the lenders in
Adjudication Order in the matter of Asian Hotels North Limited Page 4 of 21 h. Owing to the difference in positions taken by the Company and the lenders regarding the implementation of the OTR Scheme, this issue is now pending adjudication before the Hon’ble Delhi High Court. Even the application for
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