The resolution professional (RP) appointed to oversee the insolvency proceedings of Lavasa Corporation, on Wednesday, issued an Expression of Interest (EoI) inviting interested parties to submit resolution plans under the Insolvency and Bankruptcy Code (IBC).
The last date for submitting the resolution plan is 22 January 2019, and the RP appointed is Shailesh Verma of the Deloitee Touche Tohmatsu India LLP.
Lavasa, the country’s first privately-developed and managed city, was constructed by Hindustan Construction Company (HCC) which posted a net loss of Rs 15.25 billion in the second quarter (Q2) of FY19, against the corresponding quarter’s net profit of Rs 110 million in FY18, after it had written off its entire investments in the project.
Residents said while their homes and the public infrastructure constructed at Lavasa is of top-quality, there are serious issues when it comes to the maintenance and supply of utility services, a complete lack of security, and no authority where residents can raise their issues.
Some residents have expressed that neither Lavasa Corporation nor HCC take their complaints seriously and there is no transparency and accountability on the part of the developers, for the services they are meant to provide.
Source: Business Standards, November 14, 2018