Unitech falls over 6% in firm market

Unitech falls over 6% in firm market

MumbaiL Shares in real estate firm Unitech Ltd fell more than 6% on Monday, after the Economic Times reported that investigative agencies were probing a financial transaction the firm entered into in 2007.

The newspaper said investigators probing a telecoms license scandal were also examining a loan of 1,600 crore ($350 million) that Unitech received from unlisted Tata Realty and Infrastructure (TRIL).

TRIL told the paper that no loan was given to Unitech, but said it did provide the realty company with interest in mobile operations with a “commercial advance".

“Unitech is one of the largest real estate companies in India, and as part of our regular business activities, we enter into transactions with several entities. Commenting on any such transaction is not only prejudicial to our business interest but also results in infringement of confidentiality agreements entered into with such entities," Unitech said in a statement to the Economic Times.

“Nevertheless, we would like to clarify that we have not availed any loan of 1,600 crore from Tata Realty," it said.

Officials at Tata Realty and Unitech could not immediately be reached by Reuters for comment.

At 9:36 a.m., shares in Unitech were trading down 3.8% at 57.70 after having fallen as much as 6.7%, while the main Mumbai market was up 0.8%.