Lavasa homebuyers file plea at NCLAT against resolution
Millennials and Gen Z comprise majority of homebuyers: Survey
Mumbai: Homebuyers in the hill town built by Lavasa Corp have filed a fresh appeal in the case seeking the appellate tribunal's intervention in what they alleged are serious infirmities in the resolution plan.
In their appeal homebuyers have alleged discriminatory treatment, arbitrary financial burdens, absence of transparency in the insolvency process and prospective alteration of material terms of the approved plan by the Welspun Group-Ashdan Properties consortium.
Also Read: Millennials and Gen Z comprise majority of homebuyers: Survey
In a 99-page appeal, homebuyers sought a stay on the NCLT order in the case and also pleaded the appellate tribunal to direct the NCLT to hear and decide the previous pending applications filed by the homebuyers and other stakeholders, before taking up any application for approval of the resolution plan.
Alternatively, they have also sought monetary compensation with a prayer to provide all the property owners compensation by refunding their entire investment with interest at the rate of 12% per annum from the date of execution of their respective agreements.
In February, ET reported that creditors to Lavasa Corp voted in favour of the Welspun-Ashdan consortium to take over India's first privately owned hilltown with 92.21% of the vote. Homebuyers had dissented in the committee of creditors (CoC) meeting to approve the resolution plan.
Earlier this month, the Mumbai bench of the NCLT on the first day of listing of the plan approval application, concluded arguments in about ten minutes without even hearing the homebuyers, reserving the matter for orders on April 28.
“The said order was passed in gross violation of the principles of natural justice by without even granting of right to be heard to the appellants. It is submitted that the NCLT was fully aware that the homebuyers had dissented in the CoC meeting concerning approval of the resolution plan,” the appeal said. Homebuyers said that various issues flagged previously in different applications before the NCLT pointing out material irregularities in the management of the process have also not been addressed and have been kept pending by the court.
Lavasa was sold as India’s first privately built and managed city at the turn of the century, targeting rich urban natives from Mumbai and Pune wanting to escape the noise and pollution of their cities. Modelled after the Italian fishing village, Portofino, it was planned like a gated city with space for a golf course, rowing and even a football academy.
Also Read: US Mortgage applications rise 1.8% — first increase in 5 weeks as rates drop, refinance demand surges while homebuyers stay cautious
However, it went bust and was admitted to bankruptcy in 2018.
Darwin Platform Infrastructure Ltd (DPIL) had submitted a plan in December 2021, envisaging a total pay out of Rs 1,814 crore over eight years, at a haircut of about 79% to financial creditors. But it failed to implement the approved resolution plan by paying the Rs 100 crore upfront amount, leading to revival in the insolvency proceedings in September 2024.
Union Bank of India is the lead lender with 12% of total dues of Rs 6642 crore. Phoenix ARC is the second largest creditor with close to 11% of total debt. Another ARC Arcil also owns more than 10% of the debt.
Mumbai: Homebuyers in the hill town built by Lavasa Corp have filed a fresh appeal in the case seeking the appellate tribunal's intervention in what they alleged are serious infirmities in the resolution plan.
In their appeal homebuyers have alleged discriminatory treatment, arbitrary financial burdens, absence of transparency in the insolvency process and prospective alteration of material terms of the approved plan by the Welspun Group-Ashdan Properties consortium.
Also Read: Millennials and Gen Z comprise majority of homebuyers: Survey
In a 99-page appeal, homebuyers sought a stay on the NCLT order in the case and also pleaded the appellate tribunal to direct the NCLT to hear and decide the previous pending applications filed by the homebuyers and other stakeholders, before taking up any application for approval of the resolution plan.
Alternatively, they have also sought monetary compensation with a prayer to provide all the property owners compensation by refunding their entire investment with interest at the rate of 12% per annum from the date of execution of their respective agreements.
In February, ET reported that creditors to Lavasa Corp voted in favour of the Welspun-Ashdan consortium to take over India's first privately owned hilltown with 92.21% of the vote. Homebuyers had dissented in the committee of creditors (CoC) meeting to approve the resolution plan.
Earlier this month, the Mumbai bench of the NCLT on the first day of listing of the plan approval application, concluded arguments in about ten minutes without even hearing the homebuyers, reserving the matter for orders on April 28.
“The said order was passed in gross violation of the principles of natural justice by without even granting of right to be heard to the appellants. It is submitted that the NCLT was fully aware that the homebuyers had dissented in the CoC meeting concerning approval of the resolution plan,” the appeal said. Homebuyers said that various issues flagged previously in different applications before the NCLT pointing out material irregularities in the management of the process have also not been addressed and have been kept pending by the court.
Lavasa was sold as India’s first privately built and managed city at the turn of the century, targeting rich urban natives from Mumbai and Pune wanting to escape the noise and pollution of their cities. Modelled after the Italian fishing village, Portofino, it was planned like a gated city with space for a golf course, rowing and even a football academy.
Also Read: US Mortgage applications rise 1.8% — first increase in 5 weeks as rates drop, refinance demand surges while homebuyers stay cautious
However, it went bust and was admitted to bankruptcy in 2018.
Darwin Platform Infrastructure Ltd (DPIL) had submitted a plan in December 2021, envisaging a total pay out of Rs 1,814 crore over eight years, at a haircut of about 79% to financial creditors. But it failed to implement the approved resolution plan by paying the Rs 100 crore upfront amount, leading to revival in the insolvency proceedings in September 2024.
Union Bank of India is the lead lender with 12% of total dues of Rs 6642 crore. Phoenix ARC is the second largest creditor with close to 11% of total debt. Another ARC Arcil also owns more than 10% of the debt.
