Govt's Rs 25,000-cr realty fund may see some 'structural challenges'

The special fund announced by the finance minister could face some challenges due to its structuring, said private equity fund managers and consultants Business Standard spoke to.

Srini Sriniwasan, managing director at Kotak Investment Advisors, said although the government has the right intentions, the devil is in the detail.

“The positive net-worth criteria are a non-starter. There is a risk of insolvency laws not recognising rescue-financing as senior debt in the waterfall. Further, unconventional interpretation by the court of law puts this fund at risk, too. Unless insolvency laws are amended, this will be a case of good money after