Nodding creditors: Darwin platform wins Lavasa city bid for Rs 1,814 cr

Mumbai-based Darwin Platform’s revised Rs 1,814 crore offer to take over Lavasa Corporation’s privately-built smart city project near Pune was approved by the Creditors Committee (CoC) on Friday. The bid beat the closest competing bid to Rs 1,223.07 crore.

The Lavasa Hill City project was planned by Hindustan Construction Company (HCC) in 2000. It was admitted for insolvency by the National Company Law Tribunal (NCLT) in August 2018. Lavasa defaulted on its bank loans after the ministry of the Environment issued a stop work order. in 2010. The total allowable claims of financial creditors amounted to Rs.5,561.1 crore.

Earlier this month, the CoC began the process of finalizing resolution plans. “DPIL has proposed a payment plan and schedule which includes initial payment of Rs 100 crore, payment to homebuyers within 24 months of receiving environmental approval, construction and delivery of properties, redemption NCDs guaranteed after 108 months, ”said a CoC member.

The CoC member added: “These will entail a cost of Rs 1,466.50 crore. After adding working capital, repairs / renovations and other construction work, the company offered a total of Rs 1,814 in its revised resolution plan.

Ajay Harinath Singh, Group Chairman, Darwin Platform Group of Companies (DPGC), said: “This is very encouraging for us as the CoC has accepted the resolution plan and expressed full confidence in it. We have an ambitious, long-term plan for Lavasa Smart City. The company has the capacity and resources to meet the expectations of the CoC, he added.

“DPIL is committed to executing the plan according to the schedule proposed to the CoC,” Singh said. Work to develop the ambitious smart city will begin in 2022, he added.