Homebuyers as residents
Homebuyers, out of all stakeholders, experience possibly the sharpest dislocation produced by treating the collapse of Lavasa as a conventional corporate insolvency. Homebuyers are classified as financial creditors and represented as a whole in the Committee of Creditors. However, this formal recognition captures merely their monetary exposure and not their lived realities, given that in practice, many of them are residents of an incomplete albeit functioning city, dependent on the incessant supply of water, power, access to roads and basic civic maintenance.
Haircuts imposed through resolution plans are not just financial losses in the traditional sense, but manifest as uncertainty over possession, stalled…