Velan Hotels Limited has entered into an asset sale agreement with J.P.Associates Asia Pacific Private Ltd for the disposal of its hotel properties, as disclosed under Regulation 30 of SEBI regulations on January 13, 2026. The transaction marks a significant step in the company's asset restructuring process.

Transaction Details

The asset sale agreement was executed on January 13, 2026, between Velan Hotels Limited and J.P.Associates Asia Pacific Private Ltd, a Coimbatore-based entity. The buyer is confirmed to be a non-related party with no connection to the promoter, promoter group, or group companies of Velan Hotels.

Property Status and ARC Involvement

The hotel properties subject to the sale are currently under the symbolic possession of RARE Asset Reconstruction Limited (ARC). The transaction has been structured with the consent of the ARC, and a portion of the sale proceeds will be utilized to settle the company's remaining dues as per the One-Time Settlement (OTS) agreement with RARE Asset Reconstruction Limited.

The hotel properties have not generated any turnover, revenue, or income since March 2020, indicating their non-operational status during this period.

Regulatory Compliance and Approvals

The transaction falls outside the scheme of arrangement and does not qualify as a related party transaction. As per regulatory requirements, Velan Hotels Limited is in the process of obtaining shareholder approval for the proposed sale through either a postal ballot or Extraordinary General Meeting (EGM), as determined by the Board of Directors.

Financial Impact

The company has already received ₹5.00 crores as advance money from the buyer. This transaction is expected to help Velan Hotels Limited address its financial obligations, particularly the settlement of dues with the Asset Reconstruction Company through the agreed One-Time Settlement mechanism.

The company has committed to providing regular updates on material developments related to this transaction until the event is resolved or closed, ensuring transparency for stakeholders and regulatory compliance.

Velan Hotels Limited has received an adjudication order from the Registrar of Companies (ROC) Tamil Nadu, Coimbatore, imposing penalties under Section 454 of the Companies Act 2013. The order, received on January 6, 2026, relates to delays in regulatory filing compliance for the financial year 2021-22.

Penalty Details and Violations

The penalty stems from a 30-day delay in filing e-Form MGT-15 for the Annual General Meeting held on September 29, 2022, for financial year 2021-22. The company disclosed this development under Regulation 30 of SEBI Listing Obligations and Disclosure Requirements Regulations, 2015, continuing its earlier disclosures dated November 2, 2025, and December 6, 2025.

The following table outlines the penalty structure:

Regulatory Action Details

The adjudication order was issued by the ROC Tamil Nadu, Coimbatore, and served on both the company and its officers-in-default. According to the company's disclosure, the Managing Director, Executive Director, and CFO also received the same order. The order was communicated via email on January 6, 2026.

Financial and Operational Impact

Velan Hotels Limited has assessed that there is no material impact on its financial, operational, or other activities beyond the monetary penalties imposed. The company specifically stated that the impact is limited to the penalty amounts of ₹1.15 lakh for the company and ₹40,000 each for the officers-in-default.

Company's Response and Future Action

The company and its officers-in-default will evaluate the adjudication order to determine the appropriate course of action going forward. This indicates the company may consider options such as compliance with the order or potential appeals, though no specific timeline or decision has been disclosed.

The disclosure was made in compliance with SEBI Circular No. SEBI/HO/CFD/CFDPoD-1/P/CIR/2023/123 dated July 13, 2023, demonstrating the company's commitment to maintaining transparency with stakeholders regarding regulatory matters.