Lavasa City project gets Rs 540 crore bid

The bankrupt Lavasa Corporation Ltd (LCL), which owns the controversial hill station project Lavasa City near Lonavala, has finally got a buyer. Pune-based City Corporation Ltd. led by Aniruddha Deshpande has placed a Rs 540-crore bid to take over the ailing project. In August last year, the National Company Law Tribunal (NCLT) had accepted a petition by the creditors of LCL to declare the company bankrupt, and appointed a resolution professional to find resolution to the financial crisis being faced by the LCL. As per company’s website as on April 30, the company owed Rs 5,559.14 crore to financial creditors, and around Rs 400 crore to property buyers in the project. If the resolution plan submitted by Deshpande is accepted by the committee of creditors, then the financial creditors will have to take haircut of nearly 90 per cent.