Why Lavasa did not work out?

Maharashtra as a state is one of the key success stories in terms of infrastructural, economical, and
social development in the whole country. The state is also known for pushing the limits in terms of
architectural marvels. The famous piazzas of Thane’s Hiranandani Estates, the grandeur of CSMT and
many other examples were the inspiration for the development of Lavasa.
Lavasa was the brainchild of the owner of Hindustan Construction Co. Mr. Ajit Gulabchand. Lavasa
was envisioned to be a privately owned consortium of four townships constructed in close proximity
to each other and complete with amenities and the first privately managed civil body in the whole
state. The town was modelled on the waterfront of the Italian town of Portofino. However, the
ambitious plan failed to take off due to multiple controversies regarding its construction and permits.
Instead of the usually permissible 3-floor allowances in hilly areas, they went ahead with the
construction of 6. The project also violated various forest laws which were meant to ensure that the
flora and fauna of the area is not disturbed. Thus, in 2010 the Forest and Environment Ministry of
India ordered construction to be ceased. Also, the swift approvals for the 100 square-kilometer area of
the project raised eyebrows. It was also met with continued resistance from the tribals who accused
the developers of land encroachment. The Supreme Court and IAS officer YP Singh also investigated
and accused political leaders of exerting influence and clout for the purchase of land at cheaper rates.
However, most of the town had already been built and many owners of the swanky new apartments
and houses had invested their life savings into a project that was doomed to fail from the start. The
property rates swiftly fell from their introductory prices as the project saw no hope in the near future.
Also, the dwindling real estate market added fuel to the fire.
The project site is now a town with dilapidated ruins, building left to fend off the elements and
ongoing project sites left unattended with uncovered construction materials. This case is a classic case
of unaware buyers who were deceived by the builders enforcing their might onto the government
machinery. One of the reasons for the creation of the MahaRERA (Maharashtra Real Estate
Regulation Act) was the Lavasa scandal. The MahaRERA continues to regulate and enforce the
property market to ensure that foul play is not involved in any project.
As buying properties becomes an expensive affair, the legibility of ownership and carefully drawn-out
possession papers are an essential aspect. Thus, mitigating risk and investment in properties still
remains a task suited to few.