Blue Coast Hotels, promoter pay Rs 89.3 lakh to settle disclosure lapse case with Sebi

New Delhi, Jan 14 (PTI) Blue Coast Hotels and its promoter on Wednesday settled with markets regulator Sebi a case of alleged violation of disclosure norms after collectively paying Rs 89.3 lakh towards settlement charges.

The settlement came after the applicants (Blue Coast Hotels Ltd and its promoter and whole-time director Kushal Suri) proposed to settle the instant proceedings initiated against them, "without admitting or denying the findings of facts and conclusions of law".

The order came after NSE submitted an examination report highlighting multiple irregularities in Blue Coast Hotels Ltd's financials for FY19 to FY22.

Based on NSE's findings, the Securities and Exchange Board of India (Sebi) conducted a detailed investigation against the company and its key official, including the chief financial officer Kushal Suri.

The investigation found that Blue Coast Hotels failed to record a contingent liability of Rs 318.95 crore related to refunding space buyers in connection with its failed Aerocity project, despite a 2018 Delhi High Court order directing payment.

Sebi noted that the company disclosed the liability only in FY23, breaching Sebi's LODR (Listing Obligations and Disclosure Requirements) rules and Indian Accounting Standards (Ind AS 1 and 37).

Kushal Suri was also held accountable for the acts, omissions and conduct of Blue Coast Hotels Ltd (BCHL), thereby flouting disclosure rules and accounting norms, Sebi said in the order.

Thereafter, a show-cause notice was issued by Sebi to the applicants in March 2025 for the alleged violations.

Subsequently, they filed settlement applications in May 2025, and after Sebi's approval, BCHL paid Rs 78 lakh, and Suri paid up to Rs 11.37 lakh (jointly and severally).

"...in view of the acceptance of the settlement terms and the receipt of the settlement amount by Sebi, the instant adjudication proceedings initiated against the applicants is disposed of," Sebi's adjudicating officer Jai Sebastian said in the order.

As per the order, the regulator will not initiate enforcement proceedings against the entities for the violations.

However, it retains the right to take further action if any misrepresentation is discovered or if the company breaches any terms of the settlement. PTI HG HG BAL BAL