
Viceroy Hotels Wins ₹3.55 Cr Cross-Subsidy Surcharge Litigation
Viceroy Hotels Ltd has successfully concluded a significant legal battle concerning a demand notice for cross-subsidy surcharge amounting to ₹3,55,99,834/- for the fiscal years 2005-06 to 2014-15. The Hon'ble High Court of Telangana, in its final order dated September 2, 2026, set aside the demand notice issued by Southern Power Distribution Company of TS Limited. The court ruled that Viceroy Hotels is entitled to immunity under Section 32A of the Insolvency and Bankruptcy Code, 2016, following the completion of its Corporate Insolvency Resolution Process (CIRP) and a change in management. This favorable ruling provides finality and significant relief to the company, ending a long-standing litigation.
Key Highlights
- High Court sets aside ₹3.55 Cr demand notice against Viceroy Hotels.
- Ruling based on immunity under Insolvency and Bankruptcy Code, 2016.
- Litigation concluded favorably for the company post-CIRP.
- Provides financial and operational finality for Viceroy Hotels.
Price Impact
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