Postal Ballot Notice dated 14th January 2026 attached herewith

Velan Hotels Limited has issued a Postal Ballot Notice seeking shareholder approval through two special resolutions for the sale of company properties. Item 1 proposes sale of the Velan Hotel property along with maintenance area land (Schedule of Property A) to non-related parties for an aggregate consideration not exceeding INR 45 Crores. Item 2 proposes sale of additional land parcels (Schedule of Property B) to related parties including Executive Director Mr. M.R. Gautham and Mr. G. Thannvheer (a promoter group member and Gautham's son), under Sections 180(1)(a) and 188(1)(a) of the Companies Act. The background reveals the company's accounts were classified as NPA by Allahabad Bank and Andhra Bank in 2014, with debts later assigned to RARE Asset Reconstruction Limited (RARE ARC) in 2017. The sale proceeds will be used to pay outstanding dues under a One-Time Settlement with RARE ARC and to settle unsecured loans of Rs. 36.12 crores given by the promoters. Remote e-voting runs from January 21, 2026 to February 19, 2026, with results to be declared by February 23, 2026.