Homebuyers at Lavasa will have to pay actual building cost, Real Estate News, ET RealEstate

July 22, 2023

MUMBAI: The resolution plan approved by NCLT for Lavasa envisages the delivery of fully constructed properties to the homebuyers, within a period of five years of receiving environmental clearance on an actual cost basis.

Homebuyers will have to pay actual future construction costs to Darwin towards obtaining constructed properties in the project.

“In order to provide a transparent mechanism for the construction costs, the resolution applicant (RA) proposes that it shall constitute a ‘construction cost de-termination committee” of 4 members consisting of equal representation of FCCA/ homebuyers’ representatives and the RA’s management team,” the order said.

Shyam Babu Gautam and Kuldip Kumar Kareer, technical and judicial members of the NCLT, issued the order on Friday.

The Mumbai-headquartered Darwin group had earlier shown interest in the bidding process for Jet Airways and Reliance Capital. According to their group website, chairman Ajay Harinath Singh is a first-generation entrepreneur. The top financial creditors of Lavasaare Union Bank of India, L&T Finance, Arcil, Bank of India and Axis Bank.

Located in Mulshi Valley in the Western Ghats, near Pune, Lavasa was developed by the Hindustan Construction Company which had envisaged a European-style city. Lavasa Corporation had received permission to build the required infrastructure for a city.

After the company failed to meet its payment obligations, Raj Infrastructure Development India , one of Lavasa’s creditors, filed a bankruptcy petition against the company which was admitted in August 2018.

  • Published On Jul 22, 2023 at 09:03 AM IST

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