NCLT Mumbai Bench Grants Lavasa City to Darwin Platform Group Amidst Turmoil
In a noteworthy development, the Mumbai bench of the National Company Law Tribunal (NCLT) has awarded the Lavasa City project in Pune to the Mumbai-based Darwin Platform Group of Companies (DPGC), which is headed by businessman Ajay Harinath Singh. This decision comes as a significant step in the resolution of the ongoing issues surrounding the Lavasa City project.
The Lavasa City project has faced various challenges in the past, and this awarding to Darwin Platform Group of Companies marks a potential turning point for its future. The involvement of the Darwin Platform Group may bring fresh opportunities and resources to revitalize and complete the Lavasa City development.
As the new owners of the Lavasa City project, Darwin Platform Group of Companies will be tasked with taking the project forward and finding sustainable solutions to overcome its previous difficulties. The outcome of this acquisition will likely be of keen interest to investors, stakeholders, and the real estate industry as a whole.
The National Company Law Tribunal’s (NCLT) Mumbai Bench, consisting of members Kuldeep Kumar Kareer (Judicial) and Shyam Babu Gautam (Technical), delivered its final verdict on the Lavasa City project this evening. The decision concludes the legal proceedings related to the project.
In December 2021, Darwin Platform Infrastructure Ltd (DPIL), a subsidiary of the Darwin Platform Group of Companies (DPGC), emerged as the winning bidder in the financial bid for Lavasa Corporation. Lavasa Corporation is known as India’s first privately-developed hill-station smart city, situated near Pune.
With the NCLT’s final verdict in favor of DPIL and the Darwin Platform Group, they will take over ownership and control of the Lavasa City project. This development is expected to open up new possibilities for the completion and progress of the Lavasa City development, bringing renewed hope for the future of the smart city project.
After the long-awaited verdict, Ajay Harinath Singh, head of Darwin Platform Group of Companies (DPGC), expressed their commitment to execute the proposed plan for Lavasa City as per the schedule presented to the Committee of Creditors (CoC). Singh conveyed his eagerness to revitalize the ambitious Lavasa City project, signaling optimism for its future development.
According to DPIL’s lawyer, Rohit Jain, the company has already unveiled its comprehensive plans, including both short-term and long-term strategies. These plans encompass various aspects such as upfront payments, payment schedules to home buyers, construction and timely delivery of homes to buyers, and the redemption of the secured Non-Convertible Debentures (NCDs), among other important factors.
With the proposed plans in place, DPIL, under the guidance of DPGC, aims to reinvigorate the Lavasa City project and pave the way for its successful completion, fulfilling the aspirations of homebuyers and stakeholders associated with the development.
In its Final Resolution Plan submitted to the Committee of Creditors (CoC), DPIL has offered a comprehensive package of Rs 1,814, which includes provisions for working capital, repairs, refurbishment, and other construction works. This plan aims to address various aspects of the Lavasa City project and revitalize its development.
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Located in the scenic Sahyadri ranges of the Western Ghats, Lavasa is India’s first post-Independence hill station. It spans across a 100 square kilometer hilly terrain with an elevation of approximately 630 meters (2,000 feet). The development of Lavasa is inspired by and designed on the lines of the picturesque Italian resort town of Portofino, aiming to create a unique and attractive living and leisure destination.
Ajay Harinath Singh expressed his gratitude for the NCLT’s decision, which has entrusted his company, DPIL, with the challenging task of developing Lavasa City into a world-class smart city. He emphasized the project’s significant potential for a remarkable resurgence under their stewardship.
Singh conveyed his commitment to executing the plan as per the schedule proposed to the Committee of Creditors (CoC). He expressed eagerness to revitalize this ambitious venture and bring it to fruition.
DPGC’s lawyer, Rohit Jain, stated that the long wait is finally over, and Lavasa City is now set for a remarkable transformation. He highlighted that the ultra-modern smart city, equipped with various world-class amenities and attractions, will be fully ready in the next two to three years. Jain believes that Lavasa City will serve as a model for future developments, reflecting the advancements in smart city planning and implementation.
Ajay Harinath Singh has assured that the interests of home-buyers, secured financial creditors, and other stakeholders will be included and prioritized in the revival process of Lavasa City. The latest development marks the conclusion of a plea for a Corporate Insolvency Resolution Process, which was filed by operational creditors with the NCLT in 2018, under the Insolvency and Bankruptcy Code (IBC) against Lavasa Corporation.
After receiving approval from the Committee of Creditors (CoC), with reportedly 97% favoring DPGC’s bid, the final nod from the NCLT was awaited, which was finally granted on Friday. This decision may serve as a resolution to the series of legal, environmental, and other challenges that have affected the planned modern hill station of Lavasa, originally promoted by Ajit Gulabchand of the HCC Group. The development of Lavasa began more than 25 years ago.
With the successful resolution plan presented by DPGC’s DPIL, there is hope for a fresh start and a revival of Lavasa City’s development, addressing the long-standing issues that have impacted its progress over the years. The assurance from Singh regarding stakeholder priorities further underscores the commitment to ensuring a positive outcome for all parties involved in the Lavasa City project.
