“In order to provide a transparent mechanism for the construction costs, the resolution applicant (RA) proposes that it shall constitute a ‘construction cost determination committee” of 4 members consisting of equal representation of FCCA/ homebuyers’ representatives and the RA’s management team,” the order said.
Shyam Babu Gautam and Kuldip Kumar Kareer, technical and judicial members of the NCLT, issued the order on Friday.
The Mumbai-headquartered Darwin group had earlier shown interest in the bidding process for Jet Airways and Reliance Capital. According to their group website, chairman Ajay Harinath Singh is a first-generation entrepreneur. The top financial creditors of Lavasa are Union Bank of India, L&T Finance, Arcil, Bank of India and Axis Bank.
Located in Mulshi Valley in the Western Ghats, near Pune, Lavasa was developed by the Hindustan Construction Company which had envisaged a European-style city. Lavasa Corporation had received permission to build the required infrastructure for a city.
After the company failed to meet its payment obligations, Raj Infrastructure Development India, one of Lavasa’s creditors, filed a bankruptcy petition against the company which was admitted in August 2018.