CLB puts a stop on Aruna Hotels’ Chennai property development
The CLB advised the respondents, in an interim order on April 9, to refrain from selling or creating any third party interest in the property. The respondents include M Shivaram, Chairman and Managing Director of Aruna Hotels; Kartick Shivaram, Executive Director; and the Directors S Kalyanam, CL Ravichandran, and Kamal Babbar. The 1.2 acre property is located in Nungambakkam, a prime location in the heart of Chennai and is estimated to be worth Rs.200 crore.
It is learnt that the petitioner – Subasri Realty Pvt Ltd, a major shareholder in the company— says the respondents closed the hotel for the past two months, terminated the services of all employees and have entered into an agreement with a property developer. The respondents issued notices to the tenants of the premises to vacate. The respondents submitted that the board is entitled to take decision regarding the affairs of the company and its plan is to restructure the business and diversify into a “hospitality business”.
Chairman Shivaram and Kartick Shivaram had received over Rs. 10 crore in cash and a large amount by cheque which has been deposited against their borrowings from Punjab National Bank.
The court informed that it is not satisfied with the reasoning of the respondents and the apprehensions of the petitioners have not been taken care of.
Source: Hindu Business Line
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