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Tycoon’s Fund Warns Indian Realty Bad-Loan Crisis to Get Messier

  • Financiers must take haircuts on loans to stressed developers
  • Apartment buildings worth $65 billion are stuck on cash crunch
General Economy As Economic Survey Presented at Parliament Ahead of Annual Budget
Photographer: Dhiraj Singh/Bloomberg
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A realty fund controlled by billionaire banker Uday Kotak wants lenders to acknowledge that they are facing a $65 billion bad-loan crisis in the nation’s real estate sector.

Kotak Realty Fund has asked lenders to recognize soured debt and take a haircut on the credit given to apartment builders. That will spur fresh credit and revive cash flow for realty companies, Chief Executive Officer Vikas Chimakurthy said.