Three hurdles for the realty fund

While the real estate fund is desirable, the question is: Will this let reckless finance companies and obdurate real estate developers off the hook?

Following up on its announcement in September, the government has come up with an alternative investment fund (AIF) of Rs 25,000 crore for stalled realty projects. This has immediately boosted sentiment and will unlock liquidity for projects where 60-70 per cent work has been completed. The scope is wide: It goes beyond the affordable segment to include units with a ticket size up to Rs 1-2 crore and will inject money where it is needed the most — bad real estate loans or those under resolution. If it works, this scheme will help homebuyers, real estate developers, and financiers. According