Indiabulls Housing falls 10%

Indiabulls Housing Finance opened with a loss of 3.5% at Rs.700 and went down 10% to Rs.672. Currently there are only offers, no bidders on the counter.

Abhay Yadav, a shareholder of the company filed a petition in the Supreme Court yesterday, seeking legal action against the company, its Chairman and directors for alleged misappropriation of Rs 98,000 crore of public money. The petition alleged that money worth thousands of crores were siphoned off by Sameer Gehlaut, the chairman of the firm, and the directors of Indiabulls for their personal use. 

Yadav alleged that they created multiple "shell companies" to which IHFL loaned huge sums of money under "bogus and non-existent pretexts". It further said that the management transferred the loan amount to other companies which were either run, directed or operated by Gehlaut, his family members or other directors of Indiabulls, 

Indiabulls refuted these allegations, terming it as “bizarre” and made by a “racket of blackmailers”.

The company has issued a long Press Release on the same, explaining its stand. It says, “We believe that the impending merger application with Laxmi Vilas Bank made us very easy target for the blackmailers given the sensitive regulatory process we are going through right now.”