Business at standstill, no one lending money due to pending PIL: IBHFL tells HC2 min read . Updated: 29 Nov 2019, 07:36 PM IST
- The company said the litigation alleging financial irregularities should not come in the way of its normal business
- On the loans given by IBHFL to five companies, the company said the loans given to three companies have been repaid and loans given to other two entities are reported to be 'standard accounts'
New Delhi: Indiabulls Housing Finance Limited (IBHFL) on Friday sought from the Delhi High Court an observation that the current court case should not affect the ordinary course of business of the company. The court was hearing the public interest litigation filed by an NGO against it which seeks a probe into the mortgage lender.
During pendency of the litigation, the company was not being lent money by any bank on the ground it was under scanner of the high court and, as a result, it was unable to lend to anyone leading to its business coming to a standstill, claimed senior advocate Rajiv Nayar, appearing for IBHFL.
The court has further asked given time to some of the respondents to file counter affidavits. The matter would be next heard on 28 February.
The Ministry of Corporate Affairs (MCA) through an affidavit said that it was examining the violations pointed out in two inspection reports with regard to Indiabulls Venture Ltd (IBVL) and Indiabulls Housing Finance Ltd (IBHFL).
"In this regard, it is submitted that this ministry has received the Inspection Report(s) of IBVL and IBHFL on November 19 and November 15 respectively and the violations pointed out in the Inspection Reports are being examined. The third Inspection Report, in respect of IBREL, is yet to be received in this ministry," the ministry said in the affidavit.
“As far as the loans given by IBHFL to five companies, viz, DLF, Amricorp, Vatika, ADAG and Chordia which are the subject matter of the instant Writ Petition, the report states that loans given to Amricorp, ADAG and DLF have been repaid and loans given to other two entities viz Vatika and Chordia reported to be “Standard Accounts," the affidavit further said.
The petition has been filed by an organization called Citizens Whistle Blower Forum (CWBF), a registered organization working to provide a platform to whistle-blowers across the country.
The PIL sought “an in-depth, thorough and time-bound investigation" by a special investigation team, alleging serious illegalities, violations and siphoning committed by the promoters of IBHFL, its subsidiaries and their promoters. The petitioner also sought directions to the ministry of corporate affairs, registrar of companies (RoC), serious fraud investigation office (SFIO), National Housing Bank (NHB), RBI, and Sebi to take action against IBHFL and its promoters/owners.
The petitioner wanted the ministry of corporate affairs to conduct an investigation through the SFIO into the alleged irregularities. It also wants the RBI and NHB to investigate the financial affairs of IBHFL and direct a special audit of the lender. It had also sought for a direction to Sebi to conduct a thorough enquiry and investigation into the affairs of IBHFL.New Delhi: Indiabulls Housing Finance Limited (IBHFL) on Friday sought from the court an observation that the current court case should not affect the ordinary course of business of the company. The court was hearing the public interest litigation filed by an NGO against it which seeks a probe into the mortgage lender.