Disclosure under Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended
KAMATHOTEL · price
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Kamat Hotels informed exchanges that the Bombay High Court has disposed of its Writ Petition and ordered the release of Rs. 15.67 crores (along with accrued interest) that the company had earlier deposited with the Prothonotary's office. The background: in 2023, the Enforcement Directorate (ED), while investigating Micro Leasing and Funding Limited (MLFL), had frozen Kamat Hotels' bank accounts over a 2013 commercial transaction involving Rs. 3 crores of earnest money from MLFL. The High Court had then asked the company to deposit Rs. 15.67 crores to keep its accounts operational. Now, out of the released amount, the company must deposit only Rs. 5 crores with the ED (done on June 18, 2025 via demand draft to ED Bhubaneshwar) and keep the balance, which works out to roughly Rs. 10.67 crores plus interest flowing back to the company. The company will make an additional Rs. 2 crore provision in its books (on top of the Rs. 3 crore already provided) to reflect the impact.
Net positive for shareholders — the company recovers over Rs. 10 crores plus interest, with only Rs. 5 crores going to the ED. The company has stated there is no material impact beyond the Rs. 5 crore paid to ED, and the release of frozen funds should ease working capital and operational flexibility going forward.