Writ petition blaming Indiabulls Housing Finance of misappropriating Rs 98,000 crore of public money withdrawn

The writ petition alleging chairman and directors of Indiabulls Housing Finance (IHFL) of misappropriating Rs 98,000 crore of public money has been withdrawn. In a regulatory filing, the company said that the petitioner Abhay Yadav agreed his name was used to level false accusations against the company and he has unconditionally withdrawn the case. "I am not aware of the contents and allegations mentioned in the complaints or the petition. I now realise that such papers, affidavits, applications, etc were signed by me have been misused to file false complaints and petitions against Indiabulls with malafide intentions (sic)," the company statement quoted from Yadav's affidavit before the apex court.

As per the company's statement, Yadav said in his affidavit that four shares of Indiabulls were purchased in his name in May 2019 and he was asked to sign a detailed bulky complaint, which was addressed to various government officials and ministers. "I apologise with folded hands for unknowingly having signed the complaints, petition, applications, etc. without realising its contents therefore I have decided to to unconditionally withdraw the Writ Petition," Yadav said in his affidavit.

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"I don't know anything about Indiabulls, its promoter, directors or anything about their businesses. I apologise to all of them for causing harm to their reputation and business. It was never my intention to do so. I am extremely sorry for this," he further added.

On Monday, a plea was filed in the Supreme Court seeking legal action against Indiabulls, its chairman and directors for alleged misappropriation of Rs 98,000 crore of public money. The petition alleged that money worth thousands of crores were siphoned off by Sameer Gehlaut, the chairman of the firm, and the directors of Indiabulls for their personal use.

The petition in the name of Yadav alleged that Gehlaut, with the help of one Harish Fabiani - an NRI based in Spain, allegedly created multiple "shell companies" to which IHFL loaned huge sums of money under "bogus and non-existent pretexts". These companies further transferred the loan amount to other companies which were either run, directed or operated by Gehlaut, his family members or other directors of Indiabulls, the plea alleged.

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The plea also sought directions to Securities and Exchange Board of India (SEBI), Centre, Reserve Bank of India (RBI), Income Tax Department or the competent authority to restore, protect and conserve the defrauded and misappropriated investors' money. Meanwhile, Indiabulls share soared following reports of writ petition against it being withdrawn.

Meanwhile, the share price of Indiabulls Housing Finance soared after writ petition against it was withdrawn. The scrip closed at 694.30 at Bombay Stock Exchange, up by 73.15 points or 11.78 per cent.

(Edited by Vivek Punj)