Velan Hotels Ltd — Important, 13-01-2026: Company Update

The company has entered an agreement to sell its hotel properties to M/s.J.P.Associates Asia Pacific Private Ltd, a non-related party. This sale is intended to settle outstanding dues with M/s.RARE Asset Reconstruction Limited (ARC) as part of a One-Time Settlement. The company has received an advance payment of Rs.5 Crores. These hotel properties have not generated revenue since March 2020, indicating a divestment of non-performing assets. The sale is expected to be completed before March 31, 2026, pending shareholder approval.