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SWAMIH'S REAZ(TV) RESCUE
Fortune India
|October 2022
How the ₹25,000 crore fund, launched in November 2019, is building 1.7 lakh-plus houses in stuck realty projects.

IN APRIL 2013, when Mumbai resident Sarita Iyer booked a house in Rivali Park Wintergreens project by CCI Projects Private Ltd., an associate company of Cable Corporation of India, she had no idea that her quest for a dream home will turn into a nightmare fraught with anxiety, monetary loss, legal fights and protests.
According to the builder-buyer agreement, Iyer was supposed to get possession in February 2016, almost three years after the booking. However, she and fellow buyers in the project-708 units over seven acres were shocked when the builder cited paucity of funds as the reason behind stalled construction even though most buyers had paid more than 90% cost of their units. "The builder kept saying he has no funds. We did not know whether the money had been siphoned off. We filed multiple cases with Real Estate Regulatory Authority (RERA) and other forums," Iyer tells Fortune India, remembering those years as "full of struggle."
For almost three-and-a-half years, the buyers kept running from pillar to post. The efforts went in vain until November 2019 when central government launched the Special Window for Affordable and Mid Housing (SWAMIH) fund to complete stalled housing projects. SWAMIH is Category II Alternative Investment Fund (AIF) registered with Securities and Exchange Board of India with ₹10,000 crore central funding and mandate for raising ₹25,000 crore. It funds projects that have positive net worth and are registered with RERA. The net worth of a project is positive when value of receivables and unsold inventory is higher than completion cost and liabilities. Funding is capped at ₹400 crore per project.
This story is from the October 2022 edition of Fortune India.
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