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Shares of DB Realty nosedived by nearly 20 per cent in the early trade on the BSE today, following the arrest of the company’s founder by the CBI on Tuesday in connection with the 2G spectrum scam, triggering a massive sell-off by jittery investors.
The Dynamix Balwas (DB) Group Managing Director, Mr Shahid Usman Balwa, was arrested on Tuesday night from his Mumbai residence in connection with the 2G spectrum allocation scam.
Reacting sharply to the development, the scrip plummeted by 19.98 per cent to a record low of Rs 109.70 apiece, hitting the lower circuit on the Bombay Stock Exchange.
Witnessing a similar slide on the National Stock Exchange, the DB Realty counter plunged by 19.98 per cent to Rs 109.30 in the morning trade.
The arrest of Mr Balwa comes two days before the 2G case comes up for hearing in the Supreme Court. He will be produced before a magistrate today for transit remand to Delhi, sources said.
The promoter of DB Realty reportedly sold 45 per cent stake in Swan Telecom to the UAE-based Etisalat in 2009 after bagging a 2G spectrum licence. The company was later renamed Etisalat DB Telecom Pvt Ltd.
According to the sources, Mr Balwa allegedly helped the former Telecom Minister, Mr A. Raja, and some of his aides park the money in the real estate sector.
Mr Balwa is the fourth person to be arrested in the 2G spectrum case after Mr Raja, his former personal secretary Mr R.K. Chandolia and former Telecom Secretary Mr Siddharth Behura.
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