DIPP and RBI to Assess Lehman's Impact on Real Estate
The Department of Industrial Policy and Promotion (DIPP) and the Reserve Bank of India (RBI) will soon convene to address the fallout from Lehman Brothers' collapse. This comes as the US firm has $500 million invested in various real estate projects across India. Lehman's downturn raises questions on foreign investor's assets, particularly regarding lock-in periods.
- Key Discussion Points:
- Investment Rules: Current foreign investment norms restrict repatriation of funds for three years post-investment.
- Lehman's Assets: Due to specific lock-in periods, questions linger about the fate of Lehman's assets bound.
- Objective: The RBI and DIPP's meeting aims to devise a mechanism for handling Lehman's situation and potential future cases of bankruptcy involving foreign investors
Lehman's Nationwide Real Estate Footprint
- Vast Portfolio: Lehman's real estate investments span the country, showcasing the breadth of its commitment to the Indian market.
- Impact Analysis: The discussion between DIPP and RBI will critically analyze the ramifications of Lehman's financial collapse on its real estate holdings.