SC notice to PNB, Bk of Maharashtra on plea to probe Asian Hotels settlement
This story was originally published at 15:42 IST on 4 February 2026
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NEW DELHI – The Supreme Court Wednesday issued notices to the government, Punjab National Bank, and Bank of Maharashtra on a petition seeking a probe into the one-time settlement deals with Asian Hotels (North) Pvt. Ltd., which owns the Hyatt Regency Hotel at Madame Bhikaji Cama Place, New Delhi. The court also sought a reply from Asian Hotels on the plea from non-governmental organisation Infrastructure Watchdog.
The case has its genesis from both banks giving loans to Asian Hotels. Since Asian Hotels was not in a position to liquidate the loans, it approached both banks for a one-time settlement. Valuers were appointed by the lenders for the hotel which the company had offered as security.
The valuers appointed by Punjab National Bank valued the Hyatt Regency at INR 9.70 billion. The net value, after deducting property tax payable to the Municipal Corporation of Delhi, was INR 8.66 billion. The valuers appointed by Bank of Maharashtra valued the hotel at INR 10.20 billion. After deducting tax, the net value worked out to INR 7.51 billion. Accordingly, Asian Hotels offered to pay both banks on the basis of the valuation of the hotel.
According to the petitioner, the hotel was undervalued, resulting in a loss to the public exchequer and the banks having to take big haircuts. In 2021, Asian Hotels had indicated the market value of the Hyatt Regency to be INR 26 billion, the organisation said. It said it had sent complaints to the Enforcement Directorate and vigilance authorities but had received no substantive response.
In November, the Delhi High Court had rejected the non-profit organisation's petition saying there was no "contumacious" or "culpable financial impropriety" in the decision of both banks to enter into a one-time settlement with Asian Hotels. The petitioner then moved the apex court.
Wednesday, shares of Bank of Maharashtra ended 2.5% higher at INR 65.32 on the National Stock Exchange while those of Punjab National Bank closed slightly lower at INR 123.65.
Reported by Surya Tripathi
Edited by Rajeev Pai
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