Valor Emerges as Top Bidder for Lavasa with ₹771 Cr Offer Under IBC Challenge Process

Valor Estate, formerly DB Realty, has emerged as the highest bidder for the debt-ridden Lavasa Corporation, submitting an offer of ₹771.09 crore on a net present value (NPV) basis. The bid was selected through a challenge process conducted as part of Lavasa’s ongoing Corporate Insolvency Resolution Process (CIRP), which concluded after ten rounds of competitive bidding.

The Committee of Creditors (CoC), which oversees the resolution process under the Insolvency and Bankruptcy Code (IBC), will now initiate negotiations with Valor Estate. The objective will be to maximise recovery for financial creditors. The CoC is expected to seek clarifications on funding proof and compliance terms before a final decision is made. Additional rounds of discussion may also occur if modifications to the plan are proposed.

Other bidders included major real estate and infrastructure players such as Welspun Group (₹750 crore), Lodha Developers, Pride Purple Group, Jindal Steel & Power Group, and the Yogayatan Group, which placed a bid valued at ₹725 crore on an NPV basis. While gross value estimates of the bids were not officially disclosed, the NPV-based bidding format was adopted to ensure comparable financial terms across proposals.

Lavasa Corporation was admitted into CIRP following sustained defaults on loan repayments. Once envisioned as India’s first privately developed hill city, Lavasa faced multiple setbacks due to halted construction, regulatory bottlenecks, and accumulated debt liabilities exceeding ₹6,600 crore. Its financial situation deteriorated further due to the absence of environmental clearances and lack of investor confidence, leaving many residential and commercial projects incomplete.

This is not the first attempt to resolve Lavasa’s insolvency. In 2023, a ₹1,814-crore resolution plan submitted by Darwin Platform Infrastructure Ltd. (DPIL) was approved by the CoC but later collapsed when DPIL failed to meet the payment obligations. The failure resulted in the restart of the resolution process, with fresh invitations for expressions of interest issued to interested applicants.

One of the key conditions attached to the ongoing resolution is the need for environmental clearances. The Lavasa project spans ecologically sensitive areas near Pune and has previously faced legal and regulatory hurdles due to its location. Without these clearances, the successful revival of the project remains uncertain. The CoC, therefore, remains cautious about committing to any plan until legal assurances are obtained regarding environmental compliance.

The National Company Law Tribunal (NCLT) had earlier allowed an extension to the CIRP timeline by excluding the period between July 13, 2021, and January 3, 2022. While IBC guidelines stipulate that CIRP be completed within 180 days (extendable by 90 days under certain conditions), Lavasa’s case has seen multiple delays due to litigation and failed resolution attempts.

Sources involved in the resolution process confirmed that the draft plans submitted by various bidders are still subject to revision. The CoC is scheduled to meet again later this week to evaluate the details of Valor Estate’s offer and assess the feasibility of completing the resolution based on current and anticipated regulatory approvals.

The CIRP’s outcome will be closely watched by financial institutions and real estate stakeholders, given the scale of default and the complexity of reviving a large-scale township project burdened by legacy issues.