The Mumbai-based entrepreneur Ajay Harinath Singh, who leads the Darwin Group, has gained attention for acquiring and committing to revitalize India’s first private hill station, Lavasa.
The National Company Law Tribunal (NCLT) has approved the sale of Lavasa, India’s first private hill station, to Darwin Platform Infrastructure. This decision aims to resolve the concerns raised by numerous homebuyers and lenders.
On Friday, the order was issued by Shyam Babu Gautam and Kuldip Kumar Kareer, who serve as technical and judicial members of the NCLT.
The lenders’ approval led to the NCLT clearing Darwin’s resolution plan. The plan involves a payout of Rs 1,814 crore spread over eight years. Lenders will receive Rs 929 crore, and Rs 438 crore will be allocated for fully constructed houses for homebuyers.
In the total resolution amount, the claims of 837 homebuyers have been acknowledged, amounting to Rs 409 crore. The overall admitted claim amount, including claims from lenders and operational creditors, is Rs 6,642 crore.
Start Of Construction, With a Transparent Ecosystem
The resolution applicant suggests forming a ‘construction cost determination committee’ comprising 4 members. The committee will have equal representation from FCCA/homebuyers’ representatives and the resolution applicant’s management.
Its purpose is to establish a transparent mechanism for construction costs. The order emphasizes the importance of fair representation from all stakeholders.
The resolution plan aims to provide fully constructed properties to homebuyers within five years after obtaining environmental clearance. Homebuyers will be required to pay Darwin the actual future construction costs for the project.
The delivery of properties will be based on actual cost. Darwin will proceed with construction once environmental clearance is obtained.
Lavasa, “From the Rise, to Down, and Rise Again”
Unlike the congested and shabby cities in India, Lavasa aimed to be a beautiful dream. It was meant to offer open spaces, promenades, and a serene environment around a lake. The city was positioned as a place to live, work, and play, embracing modern urban ideas.
Lavasa’s location allowed for a three-hour drive from Mumbai, roughly about 180 km away and covers more than 20,000 acres. The project aimed to create India’s first privately developed city and began in 2000 by Hindustan Construction Company.
Situated in the Western Ghats region, The city’s development aimed to create a European-inspired urban environment. An American town administrator was appointed to govern the city.
The city’s design resembled a charming Italian coastal town with colourful houses and waterfronts.
Situated near Pune, it was touted as India’s first new hill station since British colonial rule. Lavasa aimed to combine the exclusivity of British hill stations with modern urban concepts.
Lavasa Corporation was granted authorization to build dams on the Warsgaon River and develop city infrastructure.
But Lavasa’s ambitious utopian vision collided with reality, leading to environmental and regulatory hurdles. Despite the initial promise, the city’s partial construction and low population contributed to challenges.
Bankruptcy
Over a decade ago, it faced mounting debt, ultimately succumbing to bankruptcy. Lavasa’s dream of becoming a thriving city encountered significant obstacles.
The main financial creditors of Lavasa include Union Bank of India, L&T Finance, Arcil, Bank of India, and Axis Bank.
Lavasa faced financial difficulties and could not fulfil payment obligations. As a result, Raj Infrastructure Development India, a creditor, filed a bankruptcy petition. The petition was accepted in August 2018. Lavasa’s financial situation led to the bankruptcy filing.
Revival
Interference of NCLT and The Dynamic proposal from the Darwin group helped Lavasa rise again. Approved by the lenders, Singh’s venture involves reviving Lavasa, India’s inaugural private hill station, further solidifying his influence in the business realm.
This ambitious endeavour is attracting attention both nationally and internationally.
Darwin Group
Ajay Harinath Singh, a Mumbai University graduate, established the Darwin Group in 2009. The group now encompasses 21 public limited companies across 11 sectors in 11 countries. Known for aggressive bidding, the group acquired many significant companies.
Darwin Group, based in Mumbai, previously expressed interest in bidding for Jet Airways and Reliance Capital. The Darwin Group is involved in various sectors like retail and infrastructure.
According to the Darwin Group’s website, Chairman Ajay Harinath Singh is a self-made entrepreneur. Ajay Harinath Singh is the first generation in his family to venture into business.
Ajay’s vision reflects in his statement
In an official statement, Ajay Harinath Singh expressed commitment to nation-building and India’s economic growth. The NCLT entrusted DPIL with developing a world-class smart city in Lavasa. Singh stated that Lavasa is poised for a remarkable resurgence under DPIL’s leadership.
The company is eager to execute the plan as proposed to the CoC. The vision aligns with the Prime Minister and Home Minister’s mission for India. DPIL aims to revitalize and transform Lavasa into an ambitious and thriving project.
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