Sebi asks Hotel Leela to share details of transactions between firm, Brookfield and promoters

The Securities and Exchange Board of India (Sebi) on Tuesday asked Hotel Leelaventure (HLVL) to provide additional disclosures in postal ballot notice for asset sales to Brookfield Sebi may also initiate adjudication proceedings against JM Financial ARC for its failure to ensure compliance with the applicable provisions of the takeover regulations.In an order issued today, G Mahalingam, Whole Time Member at Sebi asked Hotel Leelaventure to provide all relevant details of each of the sale transactions with specific information identifying the transactions between the company and Brookfield and the promoters and Brookfield.“HLVL shall make all material disclosures including the litigation relating to the claim of AAI with respect to the Leela Hotel, Mumbai, in the Postal Ballot Notice and in the financial statements in the Annual Report,” the order said. ITC had challenged the Leelaventure-Brookefield transaction in April complaining of “oppression and mismanagement”.Canadian alternative asset management company Brookfield in March had announced that it will buy key assets of Leelaventure in Delhi, Bangalore, Udaipur and Chennai for Rs 39500000000.The indian firm had sought shareholders’ approval for the proposed sale of assets, which was challenged by ITC.LIC, JM Financial ARC, ITC and LIC, along with other pub lic shareholders own 52.73% in the company. Rest 47.27% is held by the promoters.