Axis Bank has initiated the sale of its ₹511 crore exposure to Lavasa Corp, a debt-laden private hill city developer, marking the first bid among creditors for recovery amidst ongoing bankruptcy delays and litigation setbacks, as per the news reports.
On October 27, 2025, Axis Bank rolled out a process to offload its ₹511 crore loan exposure in Lavasa Corporation at a reserve price of ₹80 crore. The offer is on an all-cash basis, targeting asset reconstruction companies, NBFCs, and financial institutions. The bank, which is the fifth-largest creditor in this case, seeks expression of interest by November 18, with electronic auctions slated for November 21.
Lavasa Corporation has been under bankruptcy proceedings since 2018, following non-compliance with government and environmental clearances. With total creditor claims running up to ₹6,642 crore, recovery efforts have faltered. The first buyer search ended during the COVID-19 phase, while the second, involving Darwin Platform Infrastructure with a ₹1,814 crore plan, collapsed in 2023 due to non-payment within the scheduled timeline.
The current resolution effort, launched in September 2024, has 3 bidders: Valor Estates, a Welspun-Ashdan Developers consortium, and Mumbai-based Yogayatan Group, actively locked in legal disputes at the Mumbai NCLT. These include demands to revise payment plans and disqualify competitors. Amidst these legal roadblocks, Axis Bank’s sale signals impatience with the stalled resolution.
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Axis Bank’s decision to sell its ₹511 crore claim at a steep ₹80 crore reserve price highlights growing frustration among Lavasa’s lenders. Legal tussles and failed resolution plans have prompted creditors to explore external buyer interest as a way to cut losses and exit the prolonged insolvency case.
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Published on: Oct 28, 2025, 2:17 PM IST
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