Vaidehi Tandel
University of Mumbai, Economics, Department Member
We use data from the universe of approximately 3000 ongoing formal real estate projects in Mumbai to show that 27.3% of the projects and 42.9% of the built-up space is under litigation. Average construction time is 8.5 years. Using OLS... more
We use data from the universe of approximately 3000 ongoing formal real estate projects in Mumbai to show that 27.3% of the projects and 42.9% of the built-up space is under litigation. Average construction time is 8.5 years. Using OLS and matching techniques, and controlling for other factors determining time to completion including location, developer experience and project size, we estimate that litigated projects take approximately 20% longer to complete than non-litigated projects. A variety of robustness tests are consistent with this finding. We address potential endogeneity concerns using an instrument - the neighborhood’s propensity to sue. The increase in time to completion increases the total cost of building by at least 30%. We identify a small number of litigated projects in the Bombay High Court dockets and find that so-called Public Interest Litigation, litigation begun by people outside the contractual process (i.e. not apartment purchasers, residents, or contractors...
Research Interests: Urban Economics and India
In developing countries, separation of powers coexists with corruption by the ruling elite. This can be attributed to informal institutions, which counter the formal checks and balances. We demonstrate, by studying the Adarsh scam, the... more
In developing countries, separation of powers coexists with corruption by the ruling elite. This can be attributed to informal institutions, which counter the formal checks and balances. We demonstrate, by studying the Adarsh scam, the vulnerabilities of checks and balances. Fourteen actors belonging to different tiers of the Indian federal setup who could have vetoed the project or certain permissions failed to do so.We find that 54 percent of the checks collapsed because of quid pro quo, 21 percent due to being overridden, 4 percent due to misrepresentation, 7 percent due to absorption, and 14 percent due to omissions in the process.
Research Interests:
Research Interests:
The amount of rental housing in India has declined significantly over the years for various reasons, including the nature of the rent control laws. This paper assesses the impact of rent control for Mumbai, where it has created a... more
The amount of rental housing in India has declined significantly over the years for various reasons, including the nature of the rent control laws. This paper assesses the impact of rent control for Mumbai, where it has created a shortfall in formal, affordable rental housing and contributed to distortions in the land market. The paper describes how “first-generation” rent control in Mumbai has led to deterioration of the existing rental housing stock, virtually halted the construction of new housing for rental in the city, and given rise to informal practices such as pagdi or key money. It also analyses the spatial concentration and composition of rent-controlled tenements in the city. It proposes reforms that would allow a gradual move towards rationalized rent controls, arguing that such second-generation controls will help incentivize investments in the rental sector and reduce the demand in the housing market at large, with implications for prices and affordable housing in particular.
Research Interests:
Research Interests:
Abstract Mumbai is facing significant challenges in terms of infrastructure deficit and paucity of land owing to its mismanagement and stringent regulations. These problems could be resolved–through policy tweaks—if public organizations... more
Abstract Mumbai is facing significant challenges in terms of infrastructure deficit and paucity of land owing to its mismanagement and stringent regulations. These problems could be resolved–through policy tweaks—if public organizations that own land, managed these assets efficiently. This would not only augment the effective land supply in the city, but would also enable public organizations to unlock the potential value of their land assets. This could help in financing infrastructure projects. The first step in realizing the locked values of ...