Indiabulls Real Estate shares tank 10% on 'unlawful' order. Key details

Shares of Indiabulls Real Estate Ltd took a beating, falling over 10 per cent in Wednesday's trade after  Maharashtra Industrial Development Corporation (MIDC) issued a vacation order, directing an Indiabulls arm to vacate the land area admeasuring 5,12,068 hectors in processing zone of such SEZ at Sinnar, Nashik district, Maharashtra, within one month of receipt of order.

Calling the order 'unlawful', Indiabulls Real Estate said it is evaluating legal options to defend itself/seek redressal against the said order, including filing of an appeal before appropriate authorities or court. It said the realtor would take all desirable actions in the matter.

Indiabulls Real Estate shares fell 10.48 per cent to hit a low of Rs 105.45. Despite this, the stock is up  21.62 per cent in 2024 so far.

To recall, the real estate company had in August 2023 replied to the show-cause notices and claim petition from MIDC, the concerned authority i.e. Executive Engineer, MIDC, fixed the matter for hearing on February 5, 2024, wherein the company and IIIL presented the matter before the Executive Engineer on merits and the matter was reserved for passing necessary orders.

"While IIIL was in the process of planning and conducting further development on the land at SEZ and submitted a preliminary proposal of revival plan, on without prejudice basis, with MIDC, and was expecting a favorable order of such hearing, the MIDC has issued the vacation order," it said.