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Indiabulls Housing dips 7% on reports of PIL over alleged financial irregularities

Indiabulls Housing dips 7% on reports of PIL over alleged financial irregularities

Indiabulls Housing dips 7% on reports of PIL over alleged financial irregularities
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By Pranati Deva  Sept 6, 2019 9:37:38 AM IST (Published)

Indiabulls Housing Finance hit its 52-week low, falling over 7 percent, on Friday after reports claimed a public interest litigation (PIL) was filed against the company and its promoters in Delhi High Court on allegation of siphoning off funds.

Indiabulls Housing Finance hit its 52-week low, falling over 7 percent, on Friday after reports claimed a public interest litigation (PIL) was filed against the company and its promoters in Delhi High Court on allegation of siphoning off funds.

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The stock fell as much as 7.3 percent to hit its 52-week low of Rs 415 per share on the BSE. At 9:20 AM, the stock was trading 5 percent lower at Rs 425 as compared to a 0.45 percent or 164 points rise in the BSE Sensex at 36,808.
The PIL before Delhi HC seeks Special Investigation Team (SIT)-led investigation into the alleged violations and offences. It also alleges inaction by regulators such as Reserve Bank of India (RBI), Securities and Exchange Board of India (SEBI), Serious Fraud Investigation Office (SFIO), Registrar of Companies (ROC), and National Housing Bank (NHB), Kamini Jaiswal, Supreme Court lawyer, told CNBC-TV18.
The PIL seeks directions to MCA to authorise SFIO probe into alleged financial irregularities. It also seeks directions to RBI, SEBI to investigate the alleged irregularities and take necessary actions, she added.
In a BSE filing regarding the PIL, the company said that the petition hasn’t yet been filed in the High Court as per the website records of Delhi High Court, but has been leaked in the social media with malicious intent and vested interests to create turbulence in the stock price of the company and fulfill ulterior motives.
"Instead of going to the right forums of various regulatory agencies and making the complaint, the petitioners have deliberately chosen the route of PIL to attract attention and play into the hands of blackmailers and corporate rivals at a sensitive time of merger process of Indiabulls Housing Finance and Laxmi Vilas Bank," the company said.
For the past 3 months, the company is undergoing various inspections and scrutiny of all the different regulators as a part of the merger process and is determined to fight out the petitioners in the court, it clarified.
 
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