IRB Infra charge sheeted!

IRB Infra is the top loser on the BSE currently, diving down over 6% to Rs.197 levels; it has recovered a bit to Rs.199 levels but remains streaked red.

The stock is down as CBI yesterday filed a charge sheet against 16 people, which includes IRB chairman and managing director Virendra Mhaiskar. This charge sheet pertains to the land scam which came to the fore in 2009 through RTI activist Satish Shetty who has accused the company of cheating and forgery. He has alleged that the company has illegally purchased Govt land in Ozarde and Pimploli villages in Maval tehsil of Pune district.

This news has been around for some time now and every time something comes up on this, the stock reacts negatively and we could see the pressure over the next few days; unless the company issues receipt of some order or contract to mitigate this negativity; that’s how it has always reacted.