Corporate governance issue once again comes back to haunt realty majors.

Fresh revelations by activist-turned-politician Arvind Kejriwal on DLF-Robert Vadra episode sent the stocks of DLF, Indiabulls group and GMR Infrastructure into a tailspin.

DLF stock declined for the third straight day; it slipped about 4 per cent to trade around Rs 215.3 on the NSE. The stock is the top loser on the 50-share Nifty benchmark, closely followed by BHEL, which tumbled 3.88 per cent.

In the last three days, DLF has plummeted over 12 per cent.

Mr Kejriwal on Tuesday said that there was information that a lot of people had invested in BPTP, Indiabulls and GMR group.

GMR Infrastructure slid 6.26 per cent at Rs 23.95. While shares in Indiabulls group firms reacted sharply, BPTP is not listed.

Indiabulls Real Estate shares plunged 8.5 per cent at Rs 60.3, Indiabulls Financial Services crashed 3 per cent at Rs 224.95 and Indiabulls Infrastructure and Power slumped 4.5 per cent. Indiabulls Power and Indiabulls Securities also witnessed a steep slide in share prices.

Arvind Kejriwal and Prashant Bhushan, members of India Against Corruption, demanded a probe into the deals between DLF and Robert Vadra, son-in-law of Congress chief and UPA Chairperson Sonia Gandhi.

Activists alleged that DLF had sold prime land at throwaway prices and gave interest-free loans to Vadra. DLF, however, denied any undue gains for the company from the business relationship with Vadra.

The sharp drop came despite DLF saying it enjoyed no special favours from the Haryana Government.

(This article was published on October 10, 2012)
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