Tribunal stalls IndusInd bid to auction hotel
By Praveen Chandran | 05 Aug 2002
New
Delhi: The city-based Alternative Disputes Resolution
Arbitral Tribunal (ADRAT) has stalled the attempts of
IndusInd Bank to auction the Pune-based Ram Laxman Hotels
(RLHL) property where the five star hotel Holiday Inn
is located. IndusInds move was subsequent to a dispute
over loan recovery.
RLHL officials say IndusInd Bank had earlier obtained an order from the Debt Recovery Tribunal (DRT), Pune, for initiating recovery proceedings and proclaimed for the sale and auction of the property on 7 August 2002. But the Non-resident Indians Lead Bank (NRB), which had agreed to refinance the property, challenged the order and the ADRAT issued an ad interim award injuncting the existing lenders from proceedings with the legal process.
The officials say apart from IndusInd Bank, RLHL had borrowed certain funds from Tourism Finance Corporation of India (TFCI), Industrial Finance Corporation of India (IFCI) and Central Bank of India, and entered into a lease agreement with Holiday Inn for running the hotel. RLHL, which was servicing the loans regularly, however had problems on payment of instalments in the wake of the 11 September 2001 crisis and the fall in tourist traffic.
They claim that RHAL mortgaged the property rights only to TFCI and IFCI and neither IndusInd Bank nor Central Bank had such rights. Yet, IndusInd Bank had initiated action against RLHL. RLHL, meanwhile, approached NLB for advances against fixed assets, mainly to take advantage of all the fall in interest, and resolve repayment issues with the earlier financiers. NLB agreed to finance the project and informed the erstwhile financiers.
TFCI and IFCI approved the formula and gave their consent to hand over the title deeds and other securities to NLB against the settlement of outstandings with RLHL. But IndusInd Bank chose to ignore the settlement formula and moved DRT. The ADRAT, while stalling the DRT order, had taken a serious note of the steps taken by the concerned parties as illegal, void, malicious and without jurisdiction, tainted with fraudulent motives and in abuse of legal process.
Featured articles
![](/Uploads/Images/thumb_733d509d-493c-41e9-b429-1260d912bb91-Aerogel-Crayon.jpg)
Lighter than air, yet very, very powerful
By Kiron Kasbekar | 03 Jan 2024
In March 2013 Chinese scientists pulled off a remarkable feat. They created the world’s lightest aerogel. Tipping the scales at a mere 0.16 milligrams per cubic centimeter – that’s a sixth of the weight of air!
![](/Uploads/Images/thumb_294b0bec-6ff0-43c9-9fbc-a14e7cc70fa5-COP28.jpg)
COP28 explained: A closer look at COP28's climate change solutions
By Aniket Gupta | 27 Dec 2023
The 28th United Nations Climate Change Conference, also known as COP28, took place from 30th November 2023, to 13th December 2023, at Expo City in Dubai, United Arab Emirates.
![](/Uploads/Images/thumb_97943c9b-6e8f-429b-b355-1d4502bac437-Ponzi-Money.jpg)
What is a Ponzi scheme?
By Aniket Gupta | 06 Dec 2023
Ponzi schemes have long captivated the public imagination, drawing unsuspecting investors into a web of illusion and deception.
![](/Uploads/Images/thumb_0f8359a3-2528-4faf-86c9-707fb7bccc01-Hdfc-logo.jpg)
The Rise and Rise of HDFC Bank
03 Jul 2023
HDFC, which surged ahead of global majors like HSBC Holdings Plc and Citigroup Inc and left Indian peers like State Bank of India and ICICI Bank in market capitalisation, now ranks fourth largest among the world’s most valuable banks, after JPMorgan Chase & Co, Industrial and Commercial Bank of China Ltd and Bank of America Corp
![](/Uploads/Images/thumb_dc6b9dcc-e31e-4574-82e7-928e089406e0-Finger_millet.jpg)
India’s Millet Revolution To Enrich Global Food Basket
02 Apr 2023
Millets, a healthier and cheaper substitute to wheat and rice, are indigenous to many parts of the world, especially in the semiarid tropics of Asia and Africa, and offers a big scope for expanding production and consumption in the foodgrain deficient African continent
![](/Uploads/Images/thumb_e37827da-fafd-4991-8635-60fade3df34c-ICM.jpg)
Market predator Hindenburg preys on Adani stock
06 Mar 2023
Almost a month after the damning report of short-seller Hindenburg Research on the Adani Group that claimed that the seven stocks within the group were about 85 per cent overvalued, one of the group's stocks, Adani Total Gas, closed at Rs835 on the BSE, down nearly 79 per cent from its 24 January level, almost close to reaching that valuation
Business History Videos
![](https://businesshistory.domain-b.com/Uploads/Videos/Images/thumb_61209e69-fdfb-493a-add7-afc253731af7-YouTube-thumbnail-Hovercraf.jpg)
History of hovercraft Part 3...
By Kiron Kasbekar | Presenter: Kiron Kasbekar
![](https://businesshistory.domain-b.com/Uploads/Videos/Images/thumb_f5cfed27-cd8d-4644-9c6b-d1f3f64fb558-YouTube-thumbnail-Hovercraf.jpg)
History of hovercraft Part 2...
By Kiron Kasbekar | Presenter: Kiron Kasbekar
![](https://businesshistory.domain-b.com/Uploads/Videos/Images/thumb_1510a271-632f-46ba-846b-a761ccffe903-History-of-Hovercraft.jpg)
History of Hovercraft Part 1...
By Kiron Kasbekar | Presenter: Kiron Kasbekar
![](https://businesshistory.domain-b.com/Uploads/Videos/Images/thumb_b54c323b-99c2-47ed-9df1-06452504c83a-YouTube-thumbnail-Indian-tr.jpg)