IFCI is the top loser on the bourses currently. After hitting a new 52-week high on Friday at Rs.30.85, the stock has today tanked 6% to Rs.28.75 and remains firmly in the red.

This 180 degrees change of mind can be blamed on the Supreme Court (SC). On Friday, later in the evening, the SC directed the Govt to scrutinize into the alleged financial irregularities in IFCI, including the role of former chief, Atul Kumar Rai when it came to making investment decisions.

These allegations include a probe into the logic behind acquiring the 17.4% stake of Rajus of the Satyam in MAYTAS Infrastructure and sanction of Rs 225 crore to Blue Coast Hotels Ltd, whose name has been  put up on the wilful defaulters list by the RBI. 

The court passed the direction on a PIL by NGO CPIL, which had alleged gross administrative and financial irregularities in the IFCI that led to huge loss of public exchequer.

Naturally, this has spooked the market as one does not know how many skeletons could not come toppling down IFCI’s cupboard once this probe does get underway.