The Mumbai-based Yogayatan Group has placed the highest bid for the financially troubled Lavasa Corporation, raising its offer to ₹795 crore on a net present value (NPV) basis, up from ₹725 crore. After the initial bidding round earlier this month, bidders were given a chance to enhance their proposals.
Yogayatan’s substantial increase in its bid surpasses Valor Estates’ offer of ₹771 crore, which did not change in the latest round. The third competitor, Welspun Group, also raised its bid to ₹785 crore on an NPV basis, up from ₹750 crore in the first round.
“Currently, Yogayatan is in the lead. However, in an unexpected twist, Valor announced late on Thursday that it intends to increase its bid. The committee of creditors will convene on Friday to determine the next steps,” stated a source familiar with the situation.
All proposed plans have timelines extending up to five years, with bidders scheduling payments for the latter part of their resolution strategies to navigate uncertainties. Queries directed to EY-backed resolution professional Udayraj Patwardhan remained unanswered late in the evening, and individual bidders were unavailable for comment.
Lavasa was conceived as India’s first privately built and managed city at the turn of the century, targeting affluent urban dwellers from Mumbai and Pune seeking to escape the urban chaos and pollution. Modeled after the picturesque Italian fishing village of Portofino, Lavasa was designed as a gated community complete with amenities like a golf course, rowing facilities, and even a football academy. However, it fell into bankruptcy in 2018.
Creditors are currently facing a complicated resolution process involving land titles, outstanding regulatory approvals, and environmental issues in their second major attempt to address Lavasa’s insolvency. This follows the failure of previous bids, including a ₹1,814 crore plan from Darwin Platform Infrastructure (DPIL) approved in July 2023, which collapsed due to non-payment of the initial amount.
