Blue Coast Hotels Limited has reached a settlement agreement with the Securities and Exchange Board of India (SEBI) regarding alleged regulatory violations, marking a significant resolution to the company's ongoing regulatory proceedings.

SEBI Settlement Agreement

SEBI has agreed in principle to settlement terms proposed by Blue Coast Hotels and its Whole-Time Director through settlement applications filed to resolve alleged violations outlined in a Show Cause Notice dated March 4, 2025. The settlement allows both parties to resolve the matter without admitting or denying the findings of fact or conclusions of law.

Settlement Terms and Timeline

SEBI communicated its in-principle agreement to the settlement terms via email dated December 10, 2025. The regulatory body has advised payment of settlement charges totaling ₹89.38 lakh, with the company required to pay ₹78.00 lakh and the Whole-Time Director contributing ₹11.38 lakh. Both payments must be completed within 30 days of SEBI's communication.

Background and Previous Developments

This settlement follows the company's earlier intimation dated March 5, 2025, regarding the Show Cause Notice issued by SEBI on March 4, 2025. The settlement applications were filed as an alternative resolution mechanism, allowing the parties to avoid prolonged litigation while addressing SEBI's concerns about alleged regulatory violations.

Regulatory Compliance Resolution

The settlement agreement represents a structured approach to resolving regulatory matters without extended legal proceedings. By agreeing to the settlement terms, Blue Coast Hotels demonstrates its commitment to regulatory compliance while avoiding the uncertainties associated with contested proceedings.

The resolution of this regulatory matter through settlement provides clarity for Blue Coast Hotels' stakeholders and allows the company to focus on its core hospitality business operations. The company has fulfilled its disclosure obligations by informing stock exchanges about this significant development under Regulation 30 of SEBI listing regulations.

Blue Coast Hotels Limited, a prominent player in the hospitality sector, has encountered a significant development in its ongoing legal battle concerning the sale proceeds of its Park Hyatt Goa Hotel property. The company recently received an order from a Recovery Officer, attached to the Justice R.M. Lodha Committee, that could have substantial financial implications.

Key Details of the Order

The Recovery Officer has directed IFCI (Industrial Finance Corporation of India) to transfer Rs. 85.00 crores, along with interest, from the auction proceeds of the Park Hyatt Goa Hotel property. This order comes in response to Blue Coast Hotels' claim for a refund of the surplus auction amount that was in IFCI's possession following the hotel property sale.

Legal Context and Implications

It's important to note that this directive is not final and is subject to the outcome of ongoing proceedings before the Bombay High Court, Goa Bench. The case in question (W.P. No. 924 of 2018) has been pending since 2018, indicating the complexity and duration of this legal dispute.

Company's Response

In light of this development, Blue Coast Hotels is not sitting idle. According to the company's disclosure:

"The Company is exploring appropriate legal remedies available to challenge the said Order dated 11.11.2025 passed by the Recovery Officer."

This statement suggests that Blue Coast Hotels is preparing to contest the order, potentially prolonging the legal proceedings.

Financial Impact

While the exact financial implications of this order are not yet fully ascertainable, the potential transfer of Rs. 85.00 crores plus interest represents a significant sum for the company. Shareholders and investors will likely be watching closely to see how this situation unfolds and its impact on the company's financial position.

Timeline of Events

This case highlights the complex legal and financial challenges that can arise in the hospitality industry, particularly in matters involving property sales and auctions. As the situation continues to evolve, it will be crucial for stakeholders to monitor further developments in this ongoing dispute.