Moneylenders coming to rescue the builders in their hard times
They could be dismissed as a nondescript group of people chatting on
the lawns of an exclusive club or strolling down Marine Drive. Their
clothes are quiet, their gait without swagger. Indeed, it's hard to
believe that these are the very men who have a vice-like grip over some
of the biggest builders in the country. They are India's wealthiest
moneylenders who, even as the banks tighten their belts, loosen their
own purse-strings. With financial institutions and banks increasingly
restricting loans to developers, these moneylenders primarily belonging
to the Sindhi, Marwari and Kutchi communities have stepped in to play
their part. These moneylenders are mainly active in three cities Mumbai, Bangalore and Chennai.
The loans are given to builders for short periods, from three to six
months. The amounts could range from a couple of crores to as much as
Rs 100 crore. If the amount is substantial, about 10 to 15 of those in
the group are believed to come together to fund the project. But many
diamond merchants have burned their fingers because of the crash in the
stock market. Then there are the politicians. It's widely believed that
many builders are being backed by politicians, including ministers,
from different political parties. One construction group has seen its
fortunes steadily rise over the last five years because of its
political connections.
riathareja
riathareja
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