Lavasa Revival: Welspun-Ashdan Wins 92% Creditor Vote; Will India’s First Private Hill Station Finally Rise from Rubble?

The ghost of India’s first private hill station may finally be ready to rest. In a landmark development that could signal the end of a decade-long insolvency nightmare, the Committee of Creditors (CoC) of Lavasa Corporation Limited has decisively voted in favor of the Welspun-Ashdan consortium to take the reins of the stalled ₹16,000-crore project.

The consortium, a strategic tie-up between the global conglomerate Welspun Group (via Paschim Sagar Properties) and Pune’s local real estate powerhouse Ashdan Properties, secured a massive 92.21% majority vote. This victory comes at a critical juncture, as the project, modeled after the Italian town of Portofino, has sat largely dormant since 2018, its streets empty and its infrastructure crumbling under the weight of ballooning debt.

A Controversial Victory: Upfront Cash Trumps Higher Bid

While the 92% vote suggests a clear consensus, the path to this resolution was anything but smooth. The bidding war saw a significant showdown between Welspun-Ashdan and Valor Estate (formerly DB Realty).

On paper, Valor Estate submitted the higher financial offer, with a Net Present Value (NPV) bid of ₹946 crore. In contrast, the Welspun-Ashdan offer stood at ₹845 crore. However, as senior creditors confirmed, the “certainty of recovery” outweighed the total sticker price.

“The consortium’s higher upfront cash commitment of ₹65 crore (compared to Valor’s ₹50 crore) and their shortened payment timeline of 4 years were the deciding factors,” noted a source close to the resolution process. “Creditors have been burned before by high-value plans that never materialized. Welspun’s institutional backing and Ashdan’s local execution track record provided the comfort the banks needed.”

The Valor Challenge: Legal Hurdles Remain

The celebration at the Welspun-Ashdan camp is tempered by a pending legal battle at the National Company Law Tribunal (NCLT). Valor Estate has moved the Mumbai bench, alleging that the bidding process was compromised.

Valor contends that the Resolution Professional (RP) unfairly allowed the Welspun-Ashdan consortium to “tweak” their payment plan and timeline after the final submission deadline, without offering other bidders the same opportunity. While the NCLT allowed the voting results to be declared on January 29, 2026, the bench clarified that the final approval of the plan remains subject to judicial review of these objections.

Why the Ashdan Factor Matters for Pune

For the people of Pune and the residents of the Maval and Mulshi talukas, the inclusion of Ashdan Properties is the most significant development in this round of bidding. Unlike previous bidders who managed the project from afar, Ashdan is a Pune-based developer with a deep understanding of the local landscape, labor markets, and administrative machinery.

Ashdan has recently been active in the insolvency space, successfully acquiring DS Kulkarni Developers and Rolta India. Their “boots on the ground” approach is seen as a necessary antidote to the environmental and land-title complexities that have plagued Lavasa since its inception by Ajit Gulabchand’s HCC.

The Homebuyer’s Dilemma: A Long Wait for Possession

For the 1,000+ homebuyers who invested in Lavasa between 2004 and 2010, the news is a double-edged sword. While a new developer brings hope, the road to possession remains long.

The proposed resolution plan reportedly envisages:

1. Completion Timeline: Delivery of fully constructed properties within 5 years of receiving necessary environmental clearances.
2. Exit Options: A 40% settlement offer for those who wish to walk away from their claims within 24 months of clearances.
3. The Catch: Construction will be completed on an “actual cost basis,” meaning many buyers may have to shell out more money to see their homes finished.

Lavasa’s Debt Mountain: A 13% Recovery

Despite the optimism, the financial reality of the Lavasa takeover is a sobering reminder of the project’s scale of failure. Lavasa Corp and its subsidiaries owe over ₹16,600 crore to financial and operational creditors.

At a valuation of roughly ₹845 crore, the recovery for banks like Union Bank of India, L&T Finance, and Axis Bank represents a staggering 87% haircut. The project, which was once valued as a multi-billion dollar asset, is being salvaged for less than 13% of its admitted liabilities.

What Happens Next?

The resolution process now moves to the final stage of NCLT approval. The tribunal will need to weigh the CoC’s “commercial wisdom” against the procedural complaints filed by Valor Estate. If cleared, the Welspun-Ashdan consortium will face the Herculean task of securing renewed environmental clearances, the very issue that triggered Lavasa’s downfall in 2010.

For now, the 92% vote is the loudest heartbeat the hill station has had in years. Whether it results in a thriving city or another false start depends on how quickly the legal dust settles in the halls of the NCLT.