Litigation funding, or monetisation of pending claims through a third party, is finding its feet in India.
A common practice globally, the Indian version of the funding comes with a catch.
As Indian infrastructure companies struggle with stressed assets and huge pending claims, there is the case of Patel Engineering, which has been successful in litigation funding. Besides, sources said, the HCC was in an advanced stage to execute a similar deal. Even lenders to Era Infra Engineering are believed to be looking at it, albeit as a last option.
