New Delhi, Nov. 15 -- The Cabinet approval for the creation of a '25,000 crore alternative investment fund (AIF) to revive scores of stalled housing projects aims to bring back confidence in the beleaguered housing market.
However, as the adage goes, the devil is in the detail. The presence of myriad stakeholders in real estate projects and numerous legal, accounting and regulatory compliances pose a challenge to the quick resolution of stranded projects.
The first big challenge is to lure investors into the AIF pool, which would be structured as a debt fund. Indeed, the government has set the ball rolling with a '10,000 crore commitment. It also plans to rope in financial institutions such as State Bank of India and Life Insurance Corp. ...