Supreme Court gives Lodha relief in Juhu Centaur case, orders ED to release attached property

A Supreme Court bench of Justices MM Sundresh and Satish Chandra Sharma has ordered the Enforcement Directorate to release the Centaur Hotel (later Tulip Star) in Juhu from attachment proceedings, in a relief to listed developer Lodha Developers (erstwhile Macrotech Developers), which acquired Centaur's parent V Hotels through the Corporate Insolvency Resolution Process (CIRP) in 2024.

The order, dated November 11, also ordered the ED to return Rs 520.80 crore that Lodha had deposited with the agency, along with any accrued interest, within two weeks of the order. In July, the Supreme Court had ordered Lodha to deposit the amount with ED, in relation to the agency's probe into money laundering by V Hotels' former promoters, the Kerkar family.

Lodha did not comment on the development in the case. The developer is constructing a premium residential project at the site, under its Lodha Luxury brand. In 2024, India's second-most valued real estate firm acquired V Hotels through the CIRP for Rs 890 crore, against admitted claims of over Rs 2,500 crore, representing a significant haircut taken by the lenders.

The apex court order noted that current owners of properties acquired under the Insolvency and Bankruptcy Code (IBC) are protected from liabilities of former owners. The order noted that while the ED should delete the name of the corporate debtor (the company) from its complaint, it is free to prosecute its case against V Hotels' former promoters and their conspirators.