How to Get Real about Realty
/1 min read
The DLF case illustrates how business groups use a maze of companies and complex transactions to withhold information from the authorities
According to Sebi, DLF failed to provide key information on subsidiaries and pending legal cases at the time of its record-breaking 2007 initial public offering. The company, which has a $3 billion burden of debt, now cannot access funds from Indian equity and bond markets. The decision impacts all its stakeholders. The heavily indebted DLF may find it difficult to complete ongoing projects. However, tough action is needed to reform a sector that has become a vast playground for well-connected individuals.