Lavasa Corp Asked to Deposit Rs 3 cr in Capri Global Case

MUMBAI: The Bombay High Court has directed Lavasa Corporation to deposit Rs 3 crore within six weeks in connection with a winding up petition filed against the company by non-banking finance company Capri Global Capital.

Capri Global, which facilitated Lavasa Corporation's fundraising of around Rs 200 crore in 2008, moved the court saying the subsidiary of Hindustan Construction Company was yet to pay a part of its total fees. The company had paid part of its fees immediately , but did not fulfil its commitment of paying the balance amount by 2011. The matter is currently undergoing arbitration process.

In its order issued on Thursday , the high court said: “The appellant (Lavasa) shall deposit within six weeks from today a sum of Rs 3 crore with the prothonotary and senior master of this court, who shall invest the said amount in any interest earning deposits. In the event of deposit, the winding-up order of the company court shall stand discharged.“

The amount deposited along with its interest will be credited to the entity that gets the ruling of arbitration proceedings.

Lavasa Corporation had filed an appeal against an order passed by the court in January directing the company to deposit Rs 3.15 crore within four weeks of the order. On Thursday, the appeal was disposed of by a division bench of Chief Justice Manjula Chellur and Justice MS Sonak.

A Lavasa spokesman, in an email response, said the services provided Capri Global were not satisfactory and alleged that the NBFC is accused by CBI of alleged malpractices in facilitating loans, and therefore, the amounts under both the invoices were not payable. A Capri Global Capital spokesman said: “Lavasa only made part payments and did not honour the payment of the balance with an intention to cheat us.“