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Home F&B

Popular Hotel chain sealed & shut down

by S. Shriram
November 2, 2025
in F&B
Reading Time: 4 mins read
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40,000 sq ft of prime space in Chennai city operated without necessary, statutory approvals; a brand name which has been a household favourite in Chennai and globally for the last 35 years; INR 300 Cr worth of Government property hanging in balance; an overnight cinema-like action that shut down the facility!

This looks straight from a Tamil movie, featuring late actor Vijayakanth or the cop-donning actor Vishal.

Just that it is not. .

Hotel Saravana Bhavan (HSB) was among the first ones in Chennai city and perhaps in the country to operate an open kitchen during the mid-90s, with staff preparing fresh batter, idli and dosa, right in front of waiting customers.

Founded by late Mr. Rajagopal in 1981, the restaurant went on to become the most sought after, go-out place for several lakhs of consumers during the 90s and 2000s.

In a sad and sudden turn of events, officials from the Tamil Nadu State Government Revenue Department sealed the sprawling premises on the Chennai – Trichy National Highway on Grand Southern Trunk (GST) Road.

The restaurant, on the way to Chennai’s International Airport, was a favourite for many passengers and visitors who were on the way to pick or drop flyers.

A related case was being heard at the Madras High Court, incidentally located a few meters away from the said premises.

The Hon’ble court had delivered a verdict that the 15-grounds’ property be restored under government possession.

Despite pouring rains during the wee hours of 28th October 2025, the action was carried out under the supervision of the Collector of Chengalpattu District where the restaurant was located..

The primary reason for the sealing was the hotel’s continued operation even after the lease period had expired and its failure to hand over the land and the commercial building back to the government. 

A day later, the Hotel Management issued an Advisory that the company has always been a law-abiding entity and this setback is merely a temporary one.

The district administration also pasted a notice on the premises stating no one was allowed to tress pass in to the property

Editor’s Note

Founder Pitchai Rajagopal passed away in 2019, while serving a jail term since 2009.

He was convicted of orchestrating the murder of one of his staff members, whose wife Rajagopal wanted to marry.

He started his career in 1981 with a small grocery shop and went on to be titled the “Dosa King” of India, for taking the South Indian food items globally through franchises.

His sons Saravanan and Shiva Kumar run the brand’s Indian and International operations respectively.

The brand is present in 28 countries including the USA, the UK, Canada, the UAE, Germany, France, Singapore, Australia, New Zealand among others, with over 75 outlets.

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