New Delhi, Feb 4 The Supreme Court on Wednesday agreed to hear a plea seeking probe into the alleged undervaluation of Delhi's Hyatt Regency Hotel in the one-time settlement (OTS) deals between Asian Hotels (North) Pvt Ltd and two public sector banks.
A bench comprising Chief Justice Surya Kant and Justices Joymalya Bagchi and Vipul M Pancholi issued notice to the Centre, Asian Hotels (North) Pvt Ltd and the two banks - Bank of Maharashtra and Punjab National Bank - seeking their replies on the plea.
The top court was hearing a petition filed by NGO Infrastructure Watchdog which has challenged the Delhi High Court's November last year order.
The high court had dismissed a public interest litigation filed by the NGO seeking probe by the Central Bureau of Investigation and the Central Vigilance Commission into the OTS deals entered into by Asian Hotels (North) Pvt Ltd with the two banks.
The high court had noted in its order that Asian Hotels (North) Pvt Ltd owns the Delhi's Hyatt Regency Hotel.
The petitioner had also said in the high court that the OTS of January 24, 2025 between Asian Hotels (North) Pvt Ltd and Bank of Maharashtra be quashed.
During the arguments before the apex court, advocate Prashant Bhushan, appearing for the NGO, alleged that this was another interesting kind of a "bank fraud".
Additional Solicitor General N Venkataraman, appearing for one of the banks, objected to Bhushan's contention and said it was a genuine commercial bank transaction.
"We have recovered 116 per cent of the loan amount. Now, he wants an inquiry, an absolutely roving inquiry without any basis," he said.
During the hearing, the bench told the law officer that the OTS was of 2025.
"Before that, when did you put the hotel on auction?" the bench asked.
The law officer said it was done in 2023 but no bid was received.
The bench asked him to produce the relevant records.
"As a matter of principle, in the commercial wisdom of the banks or the financial institutions, we will not interfere. There is no question. But when we are talking of your commercial wisdom, we also know it very well that you are not a private entity. The funds which you have are the public funds. This money belong to the people of this country," the CJI said.
"Therefore, your commercial wisdom is for the purpose of giving undue benefit to a person or it is to protect the public interest, that will have to be seen," the CJI said.
The bench said since the matter has been brought to its notice, the court should satisfy its conscience that the things have taken place in a transparent and fair manner.
The law officer said the OTS was decided ultimately not by the bank alone and there were five members in the special committee headed by a retired judge.
He said vague and sweeping allegations were levelled against the bank.
The bench directed that relevant records, including reports of the bank and complete details of loan amount, be produced before it.
In its order, the high court had said that banks, acting bona fide, cannot be made answerable to the judiciary regarding the economic expediency of their decisions and easy allegations of financial impropriety by banks should not be entertained by courts unless cogent material was shown.
It had said no case was made out for the issuance of notice on the petition.
