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Delhi HC issues notice to Indiabulls Housing Finance over alleged "illegalities and violations"

Business Finance


The Delhi High Court on Friday issued a notice to Indiabulls Housing Finance Ltd, its subsidiaries and promoters while hearing a petition against the company alleging "illegalities and violations".

The Division Bench of Chief Justice DN Patel and Justice C Hari Shankar issued the notice on allegations of misappropriation of funds by Indiabulls Housing Finance Limited.

The petition seeks a direction to the Ministry of Corporate Affairs to conduct an investigation through the Serious Fraud Investigation Office (SFIO) into the alleged irregularities into the financial affairs of Indiabulls.

The petition also sought direction to the Reserve Bank of India (RBI) and the Housing Bank (NHB) to investigate the financial affairs and also to direct a special audit of IBHFL. An inquiry by SEBI is also been sought.

It has been alleged that money being loaned out to corporate groups by IBHFL is public money as IBHFL had itself, in the past many years taken huge sums of loans from various public and private banks.

The round-tripping of funds by IBHFL and its promoters is in violation of the relevant laws and policy guidelines and they have also not disclosed sources thereof and their books of account also did not show the true state of affairs.

Indiabulls has issued a statement which states that the PIL filed by Citizens Whistle Blower Forum is a pack of lies motivated by vested interest and has been filed without any research even on publicly available records of the company.

Senior Counsel Mukul Rohtagi and Abhishek Singhvi argued for the Company stated that the false and fabricated allegations made against the Company in respect of loans granted to four business groups fall flat merely on the fact that 2 of these loans to business groups are fully closed with no outstanding dues and loans to 2 other business groups are secured loans granted in the normal course of business and are being serviced regularly as per repayments schedule.

Further, these 2 business groups have no loans or investments of any kind whatsoever in any promoter companies.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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First Published: Fri, September 27 2019. 21:54 IST