The NCLT order gives relief to the mega private city project that has been mired in controversy for years; the buyer promises relief to the creditors and homebuyers
In a significant development, the National Company Law Tribunal (NCLT) delivered its verdict on Lavasa Smart City by awarding the project to the Ajay Harinath Singh-led Darwin Platform Group, a business conglomerate. In December 2021, the Committee of Creditors (CoC) voted in favour of a resolution plan submitted by Darwin Platform Infrastructure Limited (DPIL), with 96 per cent of them giving the go-ahead. In terms of shareholding, HCC’s stands at 68.7 per cent, while the others are Avantha Group, Venkateshwara Hatcheries and Pune-based developer Vithal Maniar.
A statement put out by the winner said, “Darwin Platform Infrastructure took the lead by proposing a total resolution plan amount of Rs 1,814 crore in the revised and final plan for Lavasa.” Meanwhile, the NCLT order outlines that the investment includes a resolution plan of Rs 1,466.50 crore to be paid/discharged from “funds infused over multiple tranches into the corporate debtor by way of cash funding and instruments, being equity, project inflows, loans, advances or a combination thereof”.
Located in the Mulshi valley of the Sahyadri ranges of the Western Ghats, Lavasa is around 180 km from Mumbai. Spread over 20,000 acres, the project was developing the first privately developed city. It was set up way back in 2000 by HCC and over time has been stuck in a host of issues relating to land acquisition and environmental violations. The debt resolution process for Lavasa was first admitted in 2018. Those who invested in the project, including homebuyers, have had their money stuck for years.
The NCLT Mumbai bench comprising Kuldeep Kumar Kareer, Member (Judicial) and Shyam Bahu Gautam, Member (Technical) pronounced the final order in the case – Shailesh Verma versus Darwin Platform Infrastructure Limited in the matter of Raj Infrastructure Development (India) Pvt Ltd vs Lavasa Corporation Ltd.