Bombay Dyeing stock falls 9%

Media reports said company acquired unauthorised property development permission

Wadia group-run Bombay Dyeing's stock fell nearly 9% in intra day trade at Bombay Stock Exchange on Tuesday following media report which said state government did not give permission for commercial development at company's central Mumbai property.

The stock opened at Rs 112.50 and plunged to Rs 98.80 before rising to Rs 104.85 down 8.71% on Tuesday afternoon.

On Monday a media reported the company's approval to commercially develop its 41,895 sq metre mill land at Naigaum in connivance with an officer from the state textile department.The company is constructing 38 storey residential-cum-commercial tower on the plot.

The report said that the Maharashtra government filed an affidavit in the Bombay High Court (HC) in response to company's petition challenging stop work notice issued to it by the Brihanmumbai Municipal Corporation. The affidavit said section officer in the textile department issued permission to the company in August 2004 even before being approved by state textile minister and chief minister.

Debashis Poddar, chief executive officer of Bombay Dyeing's textile division refused to comment and said he was not aware of the issue.