Velan Hotels Ltd — Important, 20-01-2026: Company Update

Velan Hotels is seeking shareholder approval for two special resolutions through a postal ballot. The first resolution involves divesting company assets, including land and buildings, for up to 45 Cr to non-related parties. This sale aims to settle significant outstanding debts to RARE Asset Reconstruction. The second resolution proposes selling vacant lands for up to 40 Cr, primarily to related parties, to repay approximately 36.12 Cr in unsecured loans provided by the Managing Director, Executive Director, and an associate company. These transactions are vital for the company to address its financial obligations, especially with operations halted since March 2020.