The Indian Restaurant Group (IRG), the restaurant operator previously known as the Mela Group, has agreed to sell the remainder of its restaurant business to Swadha Limited, a new company set up by the wife of a former director Kudeep Singh, for £250,000. The three-strong company said it had agreed to sell Chandran Limited, through which directly or indirectly all of its business is operated to Swahda, which is owned and controlled by Pranoti Singh. IRG, which is led by chairman Haresh Kanabar, said that £150,000 of the total amount would be paid on completion of the deal, which is subject to shareholder approval, with the balance to be paid in 78 equal weekly instalments. The group, which includes leisure investment firm Brainspark as a leading shareholder, said that it had also agreed to capitalise its inter-company loans to the Chandan Group amounting to, in aggregate, £610,000. If the sale is approved the company will to cases to have a trade and will be treated as an investment company and will be required to “state its investing policy going forward”. IRG operates three restaurants, including the two Mela branded sites in Shaftesbury Avenue and Redhill, Surrey. Shares in the group were suspended at the start of April until the company’s full-year results to March were published. IRG said at the time that it was changing its year-end and figures for the period until the end of March would be for 18 months’ trading. The company reported a slight rise in revenue for the 12 months to 30 September, from £2.47m to £2.54m. Pre-tax losses were reduced from £679,000 to £345,000 on the previous year, following “careful control of costs”. However, the company announced a review of its operations after its Mela site in Redhill, was still trading “below expectations”. Executive chef director Singh, and business development director Ashraf Rahman, both founders of the former Mela Group, resigned from IRG in April, along with Amit Pau, who stepped down as chief executive to oversee the roll out of the Real Man Pizza Company, the Rivington Street Holdings-backed concept. Alfredo Villa, formerly a non-executive director of IRG and chief executive of took over from Pau.