NCLT clears Lavasa private hill station's sale for Rs. 1,800cr
In a major development, the National Company Law Tribunal (NCLT) has reportedly given its nod to a revised Rs. 1,814cr insolvency resolution plan by Darwin Platform Infrastructure Limited (DPIL) for the revival of the private Lavasa hill city project in the Pune district of Maharashtra. The order approving the DPIL resolution plan on Friday came after the lenders voted in favor of the same.
Details on NCLT's statement
Per Hindustan Times, the NCLT said DPIL's Rs. 1,814cr investment involves a resolution plan of Rs. 1,466.5cr to be paid from "funds infused over multiple tranches" into the corporate debtor (Lavasa) through "cash funding and instruments" like "equity, project inflows, loans, advances or a combination." The funds would be used for obligatory payments under the Insolvency and Bankruptcy Code and payments to specific creditors.
Challenging task to develop world-class smart city: DPIL chairperson
The resolution professional of the insolvency resolution process was directed by the NCLT to provide the necessary documents and premises to the resolution applicant, i.e., DPIL, for the further process as envisioned in its plan. Meanwhile, DPIL Chairman & Managing Director Ajay Harinath Singh said, "The NCLT has entrusted us with a challenging task to develop an ambitious, world-class smart city in the country."
Know about DPIL's takeover bid
In 2021, DPIL received the Committee of Creditors' support for its Lavasa takeover bid, offering hope to many investors awaiting the completion of the project. Reportedly, its revised resolution plan was later proposed after the NCLT asked the debt-ridden Lavasa Corporation to consider an equitable allocation of proceeds from the sale of the project developer and its two units to the winning bidder (DPIL).
Lavasa: Inspired by Italy's Portofino
Located in the lush Mulshi valley of the Sahyadri ranges, around 60km away from Pune, Lavasa was first proposed in the 1990s and promoted as a hilltop destination inspired by the cotton candy harbor of Portofino, Italy. Lavasa was set up in 2000 by Hindustan Construction Company. Once completed, Lavasa would be the first privately built and managed city in India.
Problems faced by Lavasa project
However, the ambitious project soon started facing numerous issues related to land acquisition and environmental clearances, leading to deferred payments to the lenders. According to Economic Times, the NCLT then admitted Lavasa Corporation for debt resolution in 2018. Later in February 2020, the tribunal ordered the corporate insolvency resolution process of Lavasa and its subsidiaries Dasve Convention Centre Limited and Warasgaon Assets Maintenance Limited.
