Last day to bid the financially bankrupt Lavasa project scheduled today

Pune : November 20 is the last date for investors to bid for the much talked Lavasa project in Pune district. The future of the Lavasa project and those who invest in the project through different channels will depend on how many investors come forward to bid for the Lavasa project by Friday and whether the expected amount is bid from them.

Following the financial bankruptcy of the Lavasa project, the responsibility of the Lavasa project has been handed over to a resolution professional in 2018 as per the order of the National Company Law Tribunal. Resolution Professionals had earlier called on a number of big investors to come forward to pay off the debts of investors who have invested in Lavasa by selling assets in the Lavasa project. However, despite repeated extensions, the expected investor has not yet been found.

A total of Rs 6,225 crore has been lent by 17 banks for the Lavasa project, while the number of investors in Lavasa in the form of bonds and house purchases is in the thousands. It has been decided to sell the assets of the Lavasa project to meet the debts of these investors.

Lavasa Corporation Limited started construction of Lavasa project in 2000 in the area of Varasgaon dam in Pune district in an area of 25,000 hectares. The Lavasa project was claimed by Hindustan Construction Company to be the first heel station after independence. But from the outset, the project has been the subject of controversy over whether it was a land purchase or a violation of environmental regulations. In 2010, the then Union Environment Minister Jairam Ramesh had ordered a halt to work on the Lavasa project, blaming it for violating environmental regulations. Since then, the financial difficulties of the Lavasa project began. Shares of the company plunged sharply in the stock market after the order was issued. Lavasa also declared financial bankruptcy. So the big question now is what to do with the Lavasa project, which is in such a large but incomplete state.