Workers at a construction site in Mumbai. (Photographer: Dhiraj Singh/Bloomberg)
For decades, billionaire Pallonji Mistry’s construction empire could raise capital easily as lenders, besides a stable business, took comfort in his family’s 18.4 percent stake in Tata Sons Ltd., the parent of $110-billion salt-to-software Tata Group. For India’s credit market roiled by defaults and liquidity crunch, that cushion isn’t enough anymore.Finding capital has turned difficult for developers as non-bank lenders battle a liq...