DLF comes crumbling down

DLF had closed yesterday at Rs.171.60 but today, it opened itself lower at Rs.168.60 and soon slipped to a new 52-week low at Rs.137.75, plunging down 20%.

There are reports that the Supreme Court has issued a notice to the company based on a petition that highlighted how DLF had suppressed key information regarding judicial proceedings against its largest chunk of land-bank in Haryana.

Petitioner KK Sinha, on whose complain SEBI had earlier barred DLF promoters from markets and imposed a penalty, has told SC 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, and the matter is pending with the SC.

DLF will now have to file its response to the petition and it can only hope that it goes well otherwise DLF will be liable to return more than Rs.5,000 crore that it raised via two qualified institutional placements (QIPs), one of which was in 2019.

A notice has also been issued to SEBI, which too is party to the case.

The stock exchanges have sought clarification from the company but DLF is yet to respond.