INSUBCONTINENT EXCLUSIVE:
Lavasa Corporation is establishing a hill city referred to as Lavasa near Pune in Maharashtra (File)New Delhi: Construction company HCCs
real estate firm Lavasa Corporation will deal with insolvency proceedings with the NCLT on Thursday admitting plea of lending institutions
of the debt-ridden realty firm.Lavasa Corporation is developing a hill city known as Lavasa near Pune in Maharashtra.In a filing to the BSE,
the HCC on Thursday said that the National Company Law Tribunal (NCLT) has confessed a plea submitted by operational creditors who initiated
Corporate lnsolvency Resolution Process (CIRP) against Lavasa Corporation under the lnsolvency and Bankruptcy Code.NCLT selected Devendra
Prasad as Interim Resolution Professional (IRP)
Lavasa Corporation Ltd is promoted by Hindustan Construction Company with 68.7 percent stake
Avantha Group has 17.18 percent stake, while Venkateshwara Hatcheries has 7.81 per cent stake and Vithal Maniar 6.29 per cent stake
Lavasa is a very special urban development job and an effort well ahead of its time
While investors interests have been sacrificed, we are enthusiastic that the pioneering efforts to grow Lavasa into a flourishing smart city
will now find stewardship in the hands of a new owner, enabled by NCLT, HCC Director and group CEO Arjun Dhawan said.A swift resolution
through IBC would benefit all stakeholders, especially customers, who have patiently supported Lavasa through this tumultuous duration, he
added.Lavasa was started according to policy and guidelines of the Maharashtra government for brand-new hill stations, as Indias first
privately developed clever city.Lavasa has actually made considerable development in structure considerable infrastructure, over 2,200
houses and vacation homes, hotels and numerous city features and services, including a global convention centre.HCC said the task was badly
impacted by a Ministry of Environment notice to stop work for jurisdictional factors and not for ecological violations
The consequent hold-up of 1.5 years in obtaining clearances impacted the job and brand Lavasa in many ways
Operations slowly concerned a stand-still due to paucity of working capital and caused Lavasas financiers and partners to also go back or
defer their financial investment plans, HCC said.A resolution plan was sent to restore Lavasa job, but it was not accepted by the lenders,
Now, under the ClRP process, the Resolution Professional and Committee of Creditors will organize Lavasa management and will work towards
implementation of a Resolution Plan within 270 days , the filing said.
