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NCLT Initiates Insolvency Against Sahara Hospitality Over Rs 50 Crore
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17Sep

NCLT Mumbai Initiates Insolvency Proceedings Against Sahara Hospitality

The National Company Law Tribunal's (NCLT) Mumbai bench has begun insolvency proceedings against Sahara Hospitality Limited, which owns the renowned Hotel Sahara Star, over a default of Rs 50 crore. The petition was filed under Section 9 of the Insolvency & Bankruptcy Code, 2016, initiated by Delta Electro Mechanical Private Limited. This is yet another major blow to the Sahara Group, which has been embroiled in financial troubles for years.

Sahara Hospitality and the Case

Sahara Hospitality Limited is part of the troubled conglomerate Sahara Group, which has faced multiple legal and financial challenges in the last decade. The company’s flagship property, Hotel Sahara Star, one of Mumbai’s iconic luxury hotels, is at the center of the case. According to the Insolvency & Bankruptcy Code, Sahara Hospitality is accused of a substantial payment default to Delta Electro Mechanical, amounting to Rs 50 crore.

Implications of the Insolvency

With the NCLT proceedings underway, Sahara Hospitality faces the risk of asset liquidation. This raises questions about the future of Hotel Sahara Star and the broader fate of the Sahara Group’s ventures. The group, led by Subrata Roy, has been under pressure to revive its crumbling empire amidst various financial liabilities.

What Happened to the Sahara Group?

Once a colossal conglomerate, the Sahara Group has witnessed a steep downfall due to legal battles with regulatory bodies like SEBI and mounting debt issues. The company ventured into various sectors like real estate, finance, and hospitality, but many of its projects are now under scrutiny.

Can the Sahara Group Revive?

The current insolvency case poses further challenges to the revival of the Sahara Group. The group would need substantial restructuring, efficient management, and possibly new investments to stabilize and recover from its financial distress.

Key Questions:

  • What is the Sahara Group? 
    The Sahara Group, led by Subrata Roy, is a large conglomerate with businesses in real estate, hospitality, and media.
  • Who owns Sahara Group?-
    Subrata Roy is the owner of Sahara Group.
  • What is the retail venture of Sahara Group?
    Sahara Q Shop is the retail venture of the group.