New Delhi : The Supreme Court on Monday directed defaulter Blue Coast Hotels to hand over within six months the possession of the Park Hyatt Hotel in Goa, a five-star luxury hotel, along with the relevant accounts, to ITC, reversing Bombay High Court’s April order that had quashed the sale.
The Bench of Justices S A Bobde and L Nageshwara Rao quashed the Bombay High Court order declaring the auction as illegal.
It said that Blue Coast Hotels had repeatedly defaulted the loans even after it was re-scheduled on its request.
The Industrial Financial Corporation of India (IFCI) had gone for auction after the loan of Rs 150 crore given to Blue Coast became a non-performing asset (NPA). The Blue Coast stalled the auction every time IFCI issued notice for by promising to pay the outstanding but defaulted again and again.
ITC, which won the property in the fourth auction for Rs 515.44 crore, approached the Supreme Court against the Bombay HC declaring the IFCI proceedings for recovery and sale of the property as illegal. The apex court held that the Blue Coast was given several opportunities by IFCI for repayment of loan, but it failed to discharge its liabilities, forcing the later to take possession of the hotel to recover dues. The writ petitions were filed by Blue Coast first before the Panaji branch in Goa, though eventually they were heard by the Bombay High Court, which faulted IFCI for taking possession of the hotel.