Indiabulls Group stocks came under pressure on Friday after Delhi High Court (HC) sought the response of the Centre and the RBI on a plea seeking a probe by a Special Investigation Team (SIT) into the alleged illegalities, siphoning of funds and violations committed by the promoters of Indiabulls Housing Finance Ltd (IBHFL).
A bench of Chief Justice D N Patel and Justice C Hari Shankar issued a notice to the central government, the Reserve Bank of India and Indiabulls seeking their stand on the petition filed by an NGO. The court listed the matter for further hearing on December 13.
Reacting to the news, shares of Indiabulls Housing Finance slipped 7.51% to an intra-day low of Rs 383 on BSE against the previous closing price of Rs 414.80. Today the stock traded 2.72% away from the 52-week low of Rs 378.85. The stock price has lost over 10% value in the last 4 sessions.
Shares of Indiabulls Housing Finance Ltd ended 6.11% lower at Rs 389.45 on BSE, whereas Indiabulls Real Estate shares ended 9.58% lower. Similarly, Indiabulls Integrated Services Ltd was down 4.98% by the closing bell, while Indiabulls Ventures shares closed 16.92% lower at Rs 154.65 on the BSE.
Earlier this month, Citizens Whistle Blower Forum filed public interest litigation (PIL) in the Delhi High Court alleging that IBHFL through its promoters and their various group firms and subsidiaries, has been advancing dubious loans to companies owned by large corporate groups.
They, in turn, have been routing the money back into the accounts of companies owned by the promoters of Indiabulls, so as to increase their personal wealth, it alleged.
In response, Indiabulls Housing Finance had argued strongly against the issuance of the notice, calling it 'blackmailing racket' and described the PIL as "malicious" and "malafide" with the intention of creating hurdles for the planned merger with Lakshmi Vilas Bank.
By Rupa Burman Roy