Delhi’s glittering Hyatt Regency hotel has become the epicenter of a Supreme Court showdown against perceived biases in India’s insolvency landscape. A PIL spearheaded by Infrastructure Watchdog accuses banks of undervaluing the asset to forgive enormous corporate debts, sparking a fiery judicial review.
CJI Suryakant’s bench cut through the defenses with a vivid analogy: ‘Picture a struggling woman whose home banks value at a paltry 40 lakhs, denying her exit. Now imagine the leniency for a five-star behemoth—rules rewritten overnight. This disparity demands answers.’ The observation encapsulated the court’s dismay at inconsistent IBC applications.
Petitioner counsel Prashant Bhushan detailed how Asian Hotels Group’s default led to a questionable valuation, allegedly rigged with insider help. The Supreme Court responded decisively, requisitioning the government’s full dossier on the process and issuing notices to Bank of Maharashtra, Punjab National Bank, and the hotel firm for sworn explanations.
At stake is the sanctity of public money in an NPA-riddled banking sector. The bench underscored that while recovery is paramount, fairness cannot be sacrificed—debtors offering settlements merit a transparent shot, not hasty auctions. This case amplifies calls for standardized valuation audits across the board.
With deadlines looming for replies, the matter promises deeper revelations. The Supreme Court’s proactive oversight could catalyze stricter oversight in luxury asset sales, shielding taxpayers and enforcing accountability in corporate rescues.