From The Economic Times · Lijee Philip · · 1m 50s
Cash landing on you: Litigation funders bet on inheritance battles
Litigation funders target high-value inheritance disputes in India.
In brief
Litigation funders target high-value inheritance disputes in India. Litigation funders in India are increasingly funding inheritance disputes over property worth hundreds of crores, with firms like Share Samadhan and LegalPay assessing claims for potential returns. Originally reported by The Economic Times.
Inheritance disputes in India
Litigation funders are targeting high-value inheritance disputes in India where property worth hundreds of crores is at stake.
Amit Aggarwal's land dispute
Amit Aggarwal paid Rs 40 crore for agricultural land in 2008, but after 18 years it's now estimated at Rs 250 crore with competing claims.
Share Samadhan's role
Share Samadhan helps clients like Aggarwal identify litigation funders who cover legal costs in exchange for a share of spoils if they win.
LegalPay's inheritance cases
LegalPay receives about 10 inheritance dispute queries monthly, up from almost none five years ago, with 70% reaching evaluation but only 10% getting funding.
Five Rivers Capital's approach
Five Rivers Capital funds commercial disputes and sees potential in property cases where assets can appreciate and provide recovery.
Challenges in funding
Firms assess case merits, documentary evidence, legal stage, opposing party's finances, and potential recovery before committing funds.
Case example
A Delhi-NCR family with a Rs 300 crore ancestral property claim was declined funding due to occupied land, seven heirs, and no buyer.
Share Samadhan's criteria
Share Samadhan considers claims of Rs 50 crore and above, with funding typically 10-15% of anticipated recovery.
Salem Bar Association case
The Supreme Court in Salem Bar Association v Union of India promoted mediation to expedite inheritance disputes.
Funding success story
Five Rivers Capital funded enforcement proceedings for an Indian company winning arbitration, resulting in a settlement twice the capital deployed.
Inheritance funding challenges
Inheritance cases are less predictable than commercial disputes due to evidence difficulties and potential recovery paths.
What matters most
Litigation funders in India are increasingly funding inheritance disputes over property worth hundreds of crores, with firms like Share Samadhan and LegalPay assessing claims for potential returns.
