During our Pan India trip, we have visited many sites with activities almost halted because contractors have not been paid in last 1 year. This is more prevalent in Northern India including Tier 2-3 cities. Ghost towns are in abundance due to over delayed projects and huge unsold inventory.
One of the Northern India based contractor pointed that there are lot of developers who have not paid them for last 2 years resulting into contactors leaving the construction sites before completion. The reason for non payment is not just falling sales but developers diverting customers cash in acquiring land banks thus resulting in increased Litigation between Developer and Construction Contractor of the project, which will delay the project further.
