Viceroy Hotels Wins SAFEMA Appeal, Gets Property Attachment Orders Set Aside
Viceroy Hotels Limited has won its appeal before the SAFEMA Appellate Tribunal, which set aside property attachment orders dating back to March 2019. The Tribunal granted the company immunity under Section 32A of the Insolvency and Bankruptcy Code, 2016, following successful completion of CIRP and change in management. The decision ends litigation with the Enforcement Directorate and results in detachment of the Courtyard by Marriott property in Hyderabad, with no financial implications for the company.
*this image is generated using AI for illustrative purposes only.
Viceroy hotels has secured a significant legal victory with the SAFEMA Appellate Tribunal setting aside property attachment orders that had been in place since March 2019. The company received the favorable order dated 23 April 2026 on 30 April 2026, marking the end of prolonged litigation with the Enforcement Directorate under the Prevention of Money Laundering Act (PMLA).
Tribunal Decision Details
The Appellate Tribunal under The Smugglers and Foreign Exchange Manipulators (Forfeiture of Property) Act, 1976 (SAFEMA) allowed the appeal filed by Viceroy Hotels Limited by setting aside the order of the Adjudicating Authority. The original Provisional Attachment Order dated 26 March 2019 had attached certain immovable and movable properties of the company.
| Case Details: | Information |
|---|---|
| Tribunal: | SAFEMA Appellate Tribunal, New Delhi |
| Order Date: | 23 April 2026 |
| Original Attachment: | 26 March 2019 |
| Property Affected: | Courtyard by Marriott, Hyderabad |
| Legal Basis: | Section 32A, Insolvency and Bankruptcy Code, 2016 |
Legal Grounds for Victory
The Tribunal examined the facts and legal position, holding that pursuant to the successful completion of the Corporate Insolvency Resolution Process (CIRP) and approval of the resolution plan resulting in a change in management, the company is entitled to immunity under Section 32A of the Insolvency and Bankruptcy Code, 2016. The Tribunal noted that claims forming the basis of the alleged proceeds of crime had already been conclusively rejected by the NCLT/NCLAT and the resolution plan has been fully implemented.
Background of the Litigation
The litigation originated from proceedings initiated by the Enforcement Directorate under PMLA, wherein company properties were provisionally attached in March 2019. The attachment was based on allegations that funds received by the company under a terminated business transaction were linked to alleged bank fraud involving third parties. The Provisional Attachment Order was subsequently confirmed by the Adjudicating Authority in September 2019, prompting the company to file an appeal before the Appellate Tribunal.
Impact of CIRP Process
During the pendency of the appeal, Viceroy Hotels Limited underwent Corporate Insolvency Resolution Process (CIRP), which concluded in October 2023. The process culminated in approval and successful implementation of a resolution plan resulting in complete change in management. Simultaneously, the claims forming the basis of the alleged liability were adjudicated and rejected by the NCLT/NCLAT.
Regulatory Disclosure
The company disclosed this material development under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. In the detailed disclosure, the company confirmed that no financial implications are expected due to compensation or penalty, and no quantum of claims apply. The settlement involved detachment of property from the Enforcement Directorate without any monetary payment.
| Disclosure Parameters: | Status |
|---|---|
| Financial Implications: | Not Applicable |
| Quantum of Claims: | Not Applicable |
| Settlement Terms: | Property detachment, no monetary payment |
| Litigation Status: | Concluded in favor of company |
The order effectively brings the long-standing litigation to a close in favor of Viceroy Hotels Limited, providing finality and relief to the company. The decision represents a significant milestone for the company, resolving uncertainty around the property operating as Courtyard by Marriott in Hyderabad and concluding the PMLA proceedings definitively in the company's favor.
Historical Stock Returns for Viceroy Hotels
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +1.18% | +4.49% | +2.24% | +8.55% | +22.09% | +7,659.56% |
How will the removal of property attachment orders impact Viceroy Hotels' ability to secure financing for future expansion projects?
What operational improvements or investments might the company pursue now that the Courtyard by Marriott Hyderabad property is fully unencumbered?
Could this legal precedent regarding Section 32A immunity under the Insolvency and Bankruptcy Code influence similar cases in the hospitality sector?
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