Mumbai, April 25: The National Company Law Tribunal (NCLT) has approved a Rs 730 crore resolution plan for Rajesh Business and Leisure Hotels Private Limited, paving the way for revival of a long-delayed hospitality project at Kanjurmarg in Mumbai.
Resolution plan approved under IBC
The bench has allowed the application moved by Resolution Professional Rohit Ramesh Mehra under the Insolvency and Bankruptcy Code, 2016.
The corporate debtor (Rajesh Business and Leisure Hotels Private Limited), incorporated on October 21, 2005, was engaged in the construction of a hotel project.
Project history and delays
As per the NCLT’s order copy, the project, located on LBS Marg near Cine Vista Studio in Kanjurmarg (West), was launched in 2006 and was initially planned to operate under the Radisson Hotels brand. The company raised external commercial borrowings of $53.30 million in the first round and an additional $20 million later.
However, cost overruns and delays stalled construction, leaving the hotel incomplete even after a decade. The project sits on a freehold land parcel measuring over 9,400 sq. metres.
Brand changes and insolvency proceedings
In 2016, its agreement with Radisson was terminated, following which the company tied up with GHM Hotels under the proposed brand “Hotel Chedi.” Despite this, the project failed to take off due to financial distress, ultimately leading ICICI Bank Limited to initiate insolvency proceedings.
Consortium wins approval
The approved plan was submitted by a consortium of Rare Asset Reconstruction Limited and Check-Inn Hotels Private Limited, which received 100% approval from the Committee of Creditors (CoC).
Financial details of resolution plan
The resolution plan provides for an upfront payment of Rs 479.14 crore within 60 days and a total resolution outlay of Rs 730 crore. This includes Rs 461 crore for secured financial creditors and Rs 6 crore for operational creditors, including employees. An additional Rs 250 crore has been earmarked as working capital to complete the project.
Tribunal backs CoC’s decision
The tribunal reiterated that the plan satisfies all statutory requirements and upheld the commercial wisdom of the CoC.
Profile of consortium partners
Rare ARC, registered with the Reserve Bank of India as an asset reconstruction company under the SARFAESI Act, has experience in turning around stressed assets, including companies such as Haldia Coke and Aparant Iron & Steel.
Its consortium partner, Check-Inn Hotels Private Limited, is a wholly owned subsidiary of the Shree Naman Group, a Mumbai-based real estate player with over two decades of experience. The group has developed several landmark projects and has a presence in the hospitality sector, including hotels such as Sofitel (Mumbai) and Lemon Tree (Kalina).
Financial backing and net worth
To demonstrate financial strength, the consortium placed on record a certificate from HDFC Bank confirming a balance of Rs 498 crore in Check-Inn Hotels’ account. The bank also issued an in-principle approval for project and working capital financing of around Rs 250 crore. The consortium’s net worth is stated to be Rs 1,350 crore.
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Legal journey of the resolution
The resolution process witnessed prolonged litigation. The NCLT had earlier rejected the plan in 2024, but the decision was overturned by the National Company Law Appellate Tribunal in September 2025. The ruling was subsequently upheld by the Supreme Court of India, clearing the way for final approval.
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