Indiabulls Real down in red

Yesterday after market hours, Indiabulls Real Estate announced that Maharashtra Industrial Development Corporation (MIDC) has issued a vacation order for the company and its subsidiary, Indiabulls Industrial Infrastructure. The land for a proposed SEZ and now the company has to vacate the land within one month of receipt of order.

MIDC has asked the company to vacate 512.068 hectares of land in Nashik district, Maharashtra.

The company, in its defence said that it was in the process of planning and conducting further development on the land at the SEZ and had submitted a preliminary proposal of revival plan with the MIDC. The company said that it also evaluating legal options to defend itself against the order which they term "unlawful".

This SEZ was approved in 2007 and since then, MIDC has issued multiple notices to the company for little or no progress on the land, generating zero investments.

Indiabulls had received SOPs worth Rs.300 crore in the form of customs and excise duty waivers on equipment to set up the power plant. MIDC said that the company availed of the waivers but did not generate any investment for the SEZ.

The stock is a big loser today; from its close of Rs.117.80, it opened at Rs.108.75 and slipped to an intraday low at Rs.105.60, down over 10%.