Hotel Leela Venture challenges ITC's shareholder oppression claims
Hotel Leela Venture Limited (HLV) has challenged ITC's claims of shareholder oppression against it in a fresh twist to a five-year-old legal tussle at the centre of which is the 2019 sale of key Leela properties to Canada's investment giant Brookfield for ₹4,250 crore, according to sources aware of the developments.
ITC is opposing that sale transaction claiming it was to the detriment of minority shareholders. The cigarettes-to-FMCG conglomerate owns a stake in HLV Limited.
National Company Law Tribunal (NCLT) allowed ITC's petition claiming shareholder oppression and mismanagement at HLV Limited on January 24 this year, though the company doesn't have the requisite shareholding of 10% required to file such lawsuits as per rules laid down in India's Companies Act.
NCLT allowed the lawsuit as an 'exceptional' case citing ITC in the past had shareholding above the required threshold.
HLV Limited has now challenged that ruling at national company law appellate tribunal (NCLAT) which is expected to hear the case on April 19, according to the sources cited earlier.
HLV and ITC didn't respond to emails seeking comments on the matter.
The legal dispute which had gone cold is back in the spotlight amidst ITC's move to separate its hotels business into a new listed entity to aid effective capital allocation and allow the hotels division to pursue an independent course. ITC announced the spin-off of the hotels business on July 24 last year.
According to the January 24 NCLT order, which allowed ITC's petition, ITC has
