NCLT Reopens Lavasa City Insolvency, Rejects Darwin Platform’s Resolution Plan

(NCLT) in Mumbai has dismissed Darwin Platform Infrastructure Ltd’s (DPIL) resolution plan for Lavasa Hill City due to failure in implementation. The tribunal ordered the restart of the corporate insolvency resolution process (CIRP) under the Insolvency and Bankruptcy Code (IBC), with Shailesh Verma as the resolution professional.

Lavasa Hill City, located in Mulshi taluka of Pune district, was initially developed as a private hillside resort project. However, it faced major setbacks, completing only a portion of its first phase while accumulating significant debt. In 2018, the project was admitted for insolvency, and in 2021, DPIL was selected by creditors to take over the township with a bid of ₹1,814 crore.

Despite this, DPIL failed to implement the approved resolution plan. In response, over 500 homebuyers filed a petition, leading the tribunal to dismiss DPIL’s plea for an extension and dissolve the monitoring committee. The tribunal also upheld creditors’ decision to invoke performance guarantees worth ₹25 crore from DPIL, citing non-compliance with the insolvency process.

This ruling forces stakeholders to restart the process of finding a new buyer for Lavasa City.