DLF tumbles 20% as SC issues notice on non-disclosure of key information

DLF issued a clarification saying that allegations made in the petition "are not material" and "incorrect."

DLF shares tumbled 20 per cent to Rs 137.75 apiece, also its fresh 52-week low, in early morning trade on the BSE on Thursday after the Supreme Court (SC) issued the company a notice based on a plea that alleged the company of hiding information on pending cases regarding Haryana land-bank from its shareholders.

According to a report in Business Line, the petition highlighted how DLF had suppressed key information regarding judicial proceedings against the company's largest chunk of land-bank in Haryana. The plea alleges that DLF failed to mention key cases regarding the violation of the Haryana Land Ceiling Act, 1972, where adverse orders were passed by the Punjab and Haryana High Court against the DLF group companies and its admitted subsidiaries, and the matter is pending with the SC. 

All this was omitted in the 2019 QIP (qualified institutional placement) prospectus, the petitioner has alleged.

The Bombay Stock Exchange (BSE) has sought a clarification from the company in regard to the report. The company is yet to reply. 

On the other hand, DLF has issued a clarification, saying that allegations made in the petition "are not material" and "incorrect". "Will reply to the notice received," CNBC TV18 quoted the company as saying. The complain is about 5-6 acres of land by a company which is not DLF's arm, it added. 

Further, BSE has also sought clarification from the company as regards the developments, DLF said in an exchange filing.