Mumbai – The troubled Lavasa Corporation has received a fresh set of resolution plans from six contenders, with the Welspun Group emerging as the leading bidder. A subsidiary of Welspun has submitted the highest offer of ₹850 crore, which includes ₹150 crore set aside to cover process-related costs.
The bidding process has attracted notable interest from a range of players. Apart from Welspun, other bidders include a joint bid of ₹843 crore from Ashdan and Pride Purple, as well as proposals from Macrotech Developers (Lodha), DB Corp’s Valor, Jindal Steel & Power, and the Yogayatan Group. The bids range from ₹500 crore to ₹850 crore, indicating strong competition for the revival of the long-stalled hill city project near Pune.
However, a significant concern for most of the bidders is the issue of environmental clearance. Several offers, including Welspun’s, are conditional on receiving such approvals from the Maharashtra government. In contrast, only the Yogayatan Group has submitted an unconditional bid, reportedly around ₹800 crore. Yet, as per insolvency regulations under the National Company Law Tribunal (NCLT), conditional bids may not be permissible, adding complexity to the Committee of Creditors’ (CoC) decision-making process.
Despite the fresh interest, lender recovery is expected to be modest. With Lavasa Corporation owing over ₹6,642 crore to various creditors, even the highest bid would result in less than 13% recovery. The CoC is now evaluating whether to accept the top bid, seek unconditional terms from other contenders, or explore alternative strategies for resolution.
This is not the first attempt to revive Lavasa. In July 2023, Darwin Platform Infrastructure had its ₹1,814 crore resolution plan approved. However, the deal collapsed in 2024 after the company failed to make the promised ₹100 crore upfront payment, prompting the CoC to reopen the resolution process under NCLT supervision.
Launched in the early 2000s, Lavasa was envisioned as India’s first privately developed hill station, with a master plan for residential, commercial, and tourism infrastructure. However, environmental controversies, stalled construction, and mounting debt brought the ambitious township to a halt.
The coming weeks will be crucial as the CoC considers the viability of the new bids, assesses legal constraints around conditional proposals, and weighs the path forward. If approved, the Welspun-led offer could signal a long-awaited restart for Lavasa, though much will depend on regulatory clearances and execution capability.
