Mumbai: DB Realty on Monday said that it has accepted the resignation of its managing director and director of the company Shahid Balwa with effect from 9 February 2011.
“The Board of Directors of the company on March 5, 2011 has noted and accepted the resignation of Shahid U Balwa, as Managing Director and also as Director of the company in view of his preoccupations relating to certain investigations as per his letter of the same date,” DB Realty said in a filing to the Bombay Stock Exchange (BSE).
The CBI had arrested Dynamix Balwas (DB) group managing director Shahid Usman Balwa in connection with the 2G spectrum allocation scam on 8 February.
“The company continues its business in the normal course under managing director Vinod K. Goenka with the guidance of the board,” the filing said.
DB Realty added that it has also accepted the resignation of its another director Chandan Bhattacharya with effect from 18 February 2011.
Reacting to the announcement, shares of real estate company DB Realty declined by 15% to a record low of Rs100 apiece on the BSE.