The government is confident of wrapping up the on-going probe against Indiabulls before November 29, which is also the next date of hearing for the case in the Delhi High Court.
According to government sources, "Ministry of Corporate Affairs' (MCA) regional director of North Region is currently inspecting the matter as the government has received various complaints against the Indiabulls Group of companies. The report will be ready before November 29."
What’s noteworthy here is that that Sameer Gehlaut, founder and chairman, Indiabulls Group, on Monday met with the secretary ministry of corporate affairs, Injeti Srinivas, and assured that the company’s financials were strong.
"Gehlaut met and shared copies of the financial statements and auditors report of past few financial years to MCA secretary. Gehlaut assured of strong financials of the company," according to sources in the know.
Meanwhile, Gehlaut has also written to Srinivas assuring full cooperation from the company.
"He and his company representatives have been cooperating with the government authorities during the investigations and inspection procedure on alleged financial wrongdoings and fund diversion. In the letter, Gehlaut has requested and urged the government to finish the probe procedures at the earliest," government sources added.
On being asked by CNBC-TV18, government officials said that the government is yet to take a view on the case.
"Gehlaut has met, he has shared what he had to say. We have heard him. The government can take a view only once the inspection report comes to us," a government official told CNBC-TV18.
The Delhi High had agreed to hear a Public Interest Litigation (PIL) filed against Indiabulls Housing Finance Limited, which has alleged fund diversion and accounting irregularities.
The PIL was filed by a non-government organisation, Citizens Whistle Blower Forum, and has sought a Special Investigation Team-led probe into alleged irregularities, siphoning of funds, and other violations committed by the promoters of Indiabulls Housing.
Some of the allegations in the plea were that the company “through its promoters and their various group companies and subsidiary companies has been advancing dubious loans to companies owned by large corporate groups which in turn have been routing the money back to the accounts of companies owned by the promoters of Indiabulls, so as to increase their personal wealth”.
The housing finance company also faces a similar plea couple of months ago in the Supreme Court, when a PIL alleged that malpractice and fraud to the tune of about Rs 98,000 crore had been done at Indiabulls Housing.
MCA had told the Delhi High Court that it has received various complaints against the Indiabulls Group of companies and some of them are being inspected.
The ministry, in an affidavit placed before a bench of Chief Justice D N Patel and Justice C Hari Shankar, has said the inspections with regard to Indiabulls Venture Ltd (IBVL), Indiabulls Housing Finance Ltd (IBHFL) and Indiabulls Real Estates Ltd (IBREL) are underway. The government said the inspection reports for IBVL and IBHFL are likely to be ready by the end of October and that for IBREL is expected to be ready by the end of November.