Building Networks : Investigating the Nature of Quid Pro Quo Between Politicians and Real-Estate Developers in Mumbai

We investigate what happens when the politician-developer nexus is disrupted by an election. We find that if the incumbent party loses, real-estate project completion times increase by 5%. We investigate two mechanisms for the slowdown, delayed permits and increased litigation. We find that delayed permits explain 39% of the increased delays. Litigation against projects is common and adds to delays due to an overburdened judiciary. Politicians can delay or speed projects by initiating disputes or settling disputes outside the courts. Projects in constituencies where the majority party comes to power see a 25% decline in the likelihood of litigation