Kamat Hotels Gets ₹15.67 Cr Relief, Told to Deposit ₹5 Cr with ED Amid Legal Tussle

In a significant development, the Bombay High Court has directed the release of ₹15.67 crore to Kamat Hotels (India) Ltd (KHIL) while mandating the company to deposit ₹5 crore with the Directorate of Enforcement (ED). The directive is part of ongoing proceedings related to financial and regulatory matters.

Key Highlights:

- The High Court approved a mutually agreed arrangement between KHIL and the ED, allowing ₹15.67 crore to be accessed from frozen accounts.
- KHIL has already deposited ₹3 crore and is set to mobilize the remaining ₹12.67 crore from multiple bank accounts within two weeks.
- Transfers will be completed via bank instruments or online channels, supervised by the court’s Prothonotary and Senior Master.
- A designated Canara Bank account will receive revenue from KHIL’s Bhubaneswar property starting June 1, 2023.
- The ₹5 crore deposit with the ED is a parallel requirement, likely ensuring compliance as funds are released.
- The legal proceedings are connected to a broader inquiry into financial irregularities, though specifics remain confidential at this stage.

Outlook:

The court’s order offers Kamat Hotels a temporary cash-flow breather while keeping legal guardrails firmly in place. How the company navigates this compliance curve could shape both its liquidity position and the future direction of the ongoing investigation.

Sources: Bombay High Court order, Kamat Hotels public disclosures, multiple financial media reports