Lavasa, India's first private hill station, sold to Darwin Platform Infrastructure for Rs 1.8 thousand crore

Tags: place in news State News

India's first private hill station Lavasa was sold to Darwin Platform Infrastructure for Rs 1.8 thousand crore after the approval of the National Company Law Tribunal (NCLT).

An Overview of the News

• The resolution plan of Darwin Platform Infrastructure has been accepted by the NCLT and includes payment of Rs 1,814 crore.

• This payment includes Rs 929 crore to be paid to lenders and Rs 438 crore allocated to provide fully constructed houses to 837 approved home owners.

• The primary objective of Darwin Platform Infrastructure's resolution plan is to address claims of home buyers and ensure delivery of completed homes within five years, subject to obtaining environment clearance, with a total claim amount of Rs 6,642 crore.

• The resolution plan for Lavasa aims to reduce the concerns and uncertainties that have arisen among various stakeholders associated with the Lavasa project.

• As per the approved resolution plan, home buyers will be required to bear the actual future construction cost payable to Darwin Platform Infrastructure, while ensuring transparency and accountability in the process of receiving fully constructed properties.

Lavasa Hill Station:

• It is situated in the picturesque Mulshi Valley within the Western Ghats near Pune.

• It was established in 2000 by the Hindustan Construction Company, becoming India's first private hill town.

• Some of the prominent financial lenders in Lavasa include Union Bank of India, L&T Finance, Arcil, Bank of India and Axis Bank.

• Covering an extensive area of 25,000 acres, Lavasa displays impressive infrastructure and mesmerising natural beauty.

• Lavasa Corporation obtained permission to build a dam on the Varasgaon River and develop the necessary infrastructure to facilitate the city's growth.

Darwin Platform Infrastructure:

• It is a Mumbai based company belonging to Darwin Group, which has interests in various sectors like retail, realty, infrastructure and other businesses.

• Ajay Harinath Singh is the Chairman of Darwin Group.

• Lavasa faced financial troubles, as a result of which it failed to meet payment obligations to its creditors, including Raj Infrastructure Development India.

• As a result of Lavasa's inability to meet its payment obligations, Raj Infrastructure Development India filed a litigation against the company, which was later approved in 2018.