Mumbai-based Darwin Platform’s revised Rs 1,814-crore bid to take over the privately-built smart city project by Lavasa Corporation near Pune was on Friday approved by the committee of creditors (CoC). The bid beat the closest competing offer of Rs 1,223.07 crore.
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 had defaulted on bank loans after the environment ministry issued a stop-work order in 2010. The total admitted claims of the financial creditors was at Rs 5,561.1 crore.
Earlier, during the month, the CoC had started the process to finalise the resolution plans. “DPIL has proposed a payment plan and schedule that include upfront payment of Rs 100 crore, payment to homebuyers within 24 months of receipt of environmental nod, construction and delivery of properties, redemption of the secured NCDs at the end of 108 months,” a member of CoC said.
The CoC member added: “These will incur a cost of Rs 1,466.50 crore. After adding working capital, repair/refurbishment, and other construction, the company has offered a total of Rs 1,814 in its revised resolution plan.”
Ajay Harinath Singh, group chairman, Darwin Platform Group of Companies (DPGC), said, “It is very encouraging for us, as the CoC has accepted the resolution plan and expressed full confidence in it. We have an ambitious and long-term plan for Lavasa Smart City.” The company has capabilities and resources to meet the expectations of the CoC, he added.
“DPIL is committed to executing the plan as per the schedule proposed to the CoC,” Singh said. The work towards developing the ambitious smart city would begin in 2022, he added.