Stocks

Indiabulls Housing Finance plunges on reports of litigation against company

Reuters Sept 6 | Updated on September 06, 2019 Published on September 06, 2019

Indiabulls Housing Finance Ltd's shares fell as much as 9.6 per cent to Rs 405, their lowest since December 17, 2014.

The mortgage lender says it had noticed reports that a public interest litigation had been filed against the company and its promoters in Delhi Hight Court.

It clarified that the petition has not yet been filed in the High Court according to the website records of Delhi High Court, but has been leaked on social media.

Allegations in the litigation are the same as in the petition filed and subsequently withdrawn by Abhay Yadav in June, the company said.

Yadav's petition had alleged that about Rs 98,000 crore ($13.67 billion) had been siphoned out of the company by senior officials using a web of shell companies.

The company says it will fight petitioners of the current litigation in court. Indiabulls shares are down 47.5 per cent this year as of last close.

In a separate statement, builder DLF Ltd says “unfounded allegations” of a relationship between DLF group and Indiabulls group are “malicious”, and denied them.

As on date, DLF group has no exposure or investment in Indiabulls Group or any of its promoters' ventures, DLF said. But DLF shares tanked 7 per cent, marking the sharpest intra-day fall in over two weeks.

Published on September 06, 2019
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