Indiabulls Group companies fall on plea against housing finance arm

Shares of Indiabulls Group companies came under pressure on Friday after a public interest litigation filed against Indiabulls Housing Finance, its subsidiaries and promoters in the Delhi High Court alleged siphoning off of funds.

Indiabulls Housing Finance slumped 5%, Indiabulls Real Estate Ltd fell 1.3%, Lakshmi Vilas Bank Ltd declined 5% and Indiabulls Ventures Ltd was down 1%.

“The Petitioner organisation has filed the instant writ petition under Article 226 of the Constitution of India seeking direction for an in-depth, thorough and time bound investigation by a SIT into various serious illegalities, violations and siphoning committed by the promoters of Indiabulls Housing Finance Limited (IBHFL), its subsidiaries and their promoters”, the plea said.

The petitioner urged the court to direct the Ministry of Corporate Affairs, Registrar of Companies, Serious Fraud Investigation Office, National Housing Bank, Reserve Bank of India, Securities and Exchange Board of India to take action against IBHFL and its promoters.

The company, in a clarification to the exchanges said, “It has come to our notice through media reports that a PIL has been filed against Indiabulls Housing Finance and its Promoters in Delhi High Court. The petition hasn’t yet been filed in the High Court as per the website records of Delhi High Court, but has been leaked in the social media with malicious intent and vested interests to create turbulence in the stock price of the Company and fulfill ulterior motives.”

On 10 June, a plea was filed in the Supreme Court seeking action against Indiabulls Housing Finance, promoter Sameer Gehlaut and the directors for alleged misappropriation of public money. However, on 13 June, Abhay Yadav, the petitioner, withdrew the writ petition. In an affidavit, Yadav had said he was not aware of the contents and allegations mentioned in the complaints or the petition, according to Indiabulls.

First Published: Sep 06, 2019 12:01 IST