Velan Hotels Ltd. to sell biomass energy plant.

In terms of conditions of Velan Hotels Ltd's One-Time Settlement offer (OTS) approved by RARE Asset Reconstruction Limited (RARE ARC) on 20/05/2021 and the Letter of NoC dated 28/10/2021 obtained from RARE ARC, the Company is in process of sale of entire Plant & Machinery and equipment pertaining to Biomass based Renewable energy plant situated at Tirupur, Tamilnadu for which a sum of Rs.112.50 lakh has been received from one of buyers - (Non related parties) With the total consideration not less than Rs. 450 lakhs in several tranches from various prospective buyers (Non related parties) with aim to complete the sale process within the quarter ending 31st December, 2021 per terms of NoC given by RARE ARC. The proceeds of disposal of the above machineries will be utilized to settle a part of outstanding debts of the Company to RARE ARC per terms of OTS offer.

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