NEL Holdings South Ltd, the current holding company of Bangalore’s iconic Ritz Carlton hotel, has failed to repay the Rs 300 crore. Which it owes to the bank as a consequence, YES Bank may take over the Hotel.

The report also added that after the acquisition, at the time of filing the case in the National Company Law Tribunal (NCLT), the bank would look for a suitor or sell it to a new buyer. In 2020, the bank declared that funds that are owned by NEL Holdings are non-performing assets.

NEL Holdings owner Nitesh Shetty owes money from several banks and creditors. The Company had lent a loan from YES bank for constructing the 281-room hotel in Bengaluru. During the years of construction, NEL agreed to pay Rs 39.4 lakh monthly as rent. However, the profit margins were extremely thin.

Though rent for the property has been revised to Rs 1.3 crore, YES Bank still believes that the rent should be higher. Further reports added that the Ritz Carlton, constructed by NEL holdings and opened in 2013, hands over only 0.4% of gross revenues to its parent organization Marriot Group. The minimum overnight staying charge in the hotel is Rs 21,000.

Contemporarily, Investors have a 74% stake in NEL Holdings South Ltd. Company has reported a loss of more than Rs 66 crore in FY21.