NCLT Approves ₹730 Crore Revival Plan for Rajesh Hotels

Mumbai, April 2026: Deal chatter around stressed hotel assets is heating up again, and the latest signal comes from the NCLT’s approval of a ₹730 crore resolution plan for Rajesh Business & Leisure Hotels.

The order clears the way for a consortium of Rare Asset Reconstruction Company and Check-Inn Hotels, a Shree Naman Group arm, to take over the company. And with that, a long-stuck insolvency case finally moves toward closure.

The focus now shifts to execution, and whether the buyers can actually revive the stalled asset.

Consortium-led acquisition to drive revival

The approved plan hands control to the consortium, which now has to pull off a turnaround. One side brings balance-sheet muscle. The other knows real estate and hotel development.

That mix matters.

The company entered insolvency in 2022 after a loan default. What followed was the usual grind, multiple bids, legal rounds, delays. Now, after years of back-and-forth, there’s a final call.

₹730 crore plan addresses outstanding liabilities

The ₹730 crore resolution comes with a steep haircut for creditors. There’s no sugarcoating that. But it still offers a recovery path where earlier there was none.

Secured lenders will take the larger share of the payout, in line with insolvency rules. Others will have to settle for less.

That’s the trade-off in most hospitality insolvency cases right now, partial recovery versus dead assets.

Revival of stalled Mumbai hotel project

At the center of this deal is a delayed hotel project in Mumbai. It’s been sitting idle, caught between funding gaps and legal friction.

Now, with ownership sorted, work is expected to restart.

If executed right, the project could add fresh inventory to a market where demand has been picking up.

Resolution follows extended legal process

This wasn’t a quick fix. The case dragged through multiple challenges, objections, and court reviews before landing here.

But the final approval brings clarity. And ends years of uncertainty around the asset.

It also reinforces one thing, the insolvency route, slow as it is, is still pushing stuck hospitality projects toward resolution.

Hospitality sector sees continued restructuring activity

This deal is part of a bigger pattern. Distressed hotel assets are quietly changing hands across India.

And buyers are stepping in with a clear play, acquire cheap, fix the asset, ride the demand wave.

With travel demand holding strong, these turnarounds could define the next phase of growth in the hospitality sector.