Viceroy Hotels received a favorable order from the Telangana High Court on September 10, 2026, setting aside a ₹3.56 crore cross-subsidy surcharge demand. The court ruled that the company is entitled to immunity under Section 32A of the Insolvency and Bankruptcy Code following its corporate insolvency resolution.

The dispute originated from a demand notice issued by Southern Power Distribution Company of TS Limited on January 31, 2025. The notice sought payment for FYs 2005-06 to 2014-15 based on earlier regulatory determinations. Viceroy Hotels challenged this in the Telangana High Court via writ petition WP No. 5687 of 2025.

Legal Resolution and Immunity

In its final order dated September 2, 2026, the High Court allowed the company’s writ petition. The court held that the successful completion of the Corporate Insolvency Resolution Process (CIRP) and the subsequent change in management triggered protections under Section 32A of the Insolvency and Bankruptcy Code, 2016.

Consequently, no further action could be taken against the company regarding this specific demand. This decision brings finality to the litigation, which had been pending since the initial demand notice was issued in early 2025.

What the Numbers Show

The set-aside of the ₹3,55,99,834 demand eliminates a potential cash outflow stemming from legacy periods (FYs 2005-06 to 2014-15). Because the court grounded its decision in statutory immunity under the IBC rather than a merit-based review of the electricity charges themselves, the ruling provides a definitive legal shield against similar pre-CIRP claims linked to this specific regulatory notice.

This development follows the conclusion of Viceroy Hotels’ CIRP proceedings in October 2023. The company confirmed there are no expected financial implications or compensation payments arising from this specific litigation closure.

Viceroy Hotels Limited secured overwhelming shareholder approval for its FY26 financials and director re-appointment at its 61st Annual General Meeting on September 10, 2026. Both ordinary resolutions passed with 99.98% support, reflecting strong promoter backing despite minimal public institutional participation.

The meeting, conducted via video conferencing, saw 71 members attend. The voting rights were reckoned as of September 4, 2026. The remote e-voting window remained open from September 7 to September 9, 2026.

Key Discussions

Mr. Gorinka Jaganmohan Rao, Chairperson and Independent Director, chaired the proceedings. He outlined the company’s performance against industry standards and detailed future growth plans. Key updates included:

• The acquisition of SLN Terminus Hotels & Resorts Private Limited, owner of Marriott Executive Apartments in Hyderabad, during FY25-26.
• Completion of renovations at Courtyard by Marriott Hyderabad.
• Targeted completion of the Madhapur project during FY29-30.
• Details regarding the rights issue, which opened on September 3, 2026.

Voting Results Breakdown

Shareholders voted on two ordinary resolutions via remote e-voting and insta-poll. The scrutinizer report from M/s. S.S. Reddy & Associates confirmed the results. Notably, public institutional shareholders held 26,025 shares but cast zero votes, while promoters holding 56,842,105 shares participated fully.

Participation by Category

The detailed voting data reveals a sharp divergence in engagement between promoter and public shareholders. While promoters voted unanimously in favor, public non-institutional shareholders showed mixed sentiment, particularly on the director appointment.

For the re-appointment of Mr. Prabhakar Reddy Solipuram, public non-institutional participation was lower (87,904 votes polled), with 89.23% voting in favor and 10.77% against. No invalid votes were recorded for either resolution.

Governance

M/s. S.S. Reddy & Associates served as the scrutinizer for the e-voting process. The company secretary, C. Siva Kumar Reddy, authenticated the results. The electronic data and relevant records relating to e-voting will be preserved by the Company Secretary after the Chairman approves the minutes.