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TUESDAY, NOVEMBER 24, 2009
No end seen to liquidity woes for India’s real estate developers
Most developers rely on banks for funds, and are bearing the brunt of RBI’s directive to curb lending to the sector
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I think someone has to question how much money, raised from both institutions and the public, has been put in the personal pockets of these developers to buy private jets and to fund their lifestyles. DLF is a classic example. The money has been raised on the back of manipulated valuations and forecasts. I think its time they put their hands in their own pockets and start solving this rather than flying around the world on their jets. Its utter nonsense. Someone ought to be anaylysing what assets are held by the promotors, both in India and overseas, after which the scale of the problem will come to light. The promoters will blame the sector and the banks for their own financial crisis. This is simply not good enough.
Hendriech
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