Indiabulls Housing Finance shares extended decline for a second straight session on Wednesday, a day after the mortgage lender faced allegations of embezzlement.
Shares fell 9 percent to Rs 612 today after a plea was filed in the Supreme Court seeking legal action against the company's chairman and directors for alleged misappropriation of Rs 98,000 crore of public money.
The petition alleged that money was siphoned off by Sameer Gehlaut, chairman of the firm, and the directors of Indiabulls for their personal use.
In an exclusive interview with CNBC-TV18, Indiabulls Housing's Group Executive Director, Ajit Mittal denied the accusations and called it a "criminal conspiracy".
“There is no substance or truth to the allegations and not a single rupee was siphoned off. We have credible evidence against the blackmailers and we will deal with them,” Mittal said.
Despite the clarification, Indiabulls Housing stock hit its 52-week low of Rs 576.35 on Tuesday, correcting nearly 8 percent.
The mortgage lender has lost nearly half of its value last year, while the 30-share BSE Sensex has gained about 10 percent during the same period.
On a year-to-date basis, Indiabulls Housing stock has dropped about 26 percent while the BSE Sensex has advanced nearly 9 percent.
Indiabulls’ peers such as DHFL and Can Fin Homes rose between 0.49 to 4.4 percent at 12.55 pm, while Reliance Home, HDFC, Gruh Finance, Repco Home, and Ujjivan fell between 0.03 to 3.93 percent.
The broader NBFC sector has been facing a liquidity crisis after the infrastructure lender Infrastructure Leasing and Financial Services (IL&FS) defaulted on its debt obligations last year.
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-ANI contributed to this story