New Delhi: Indiabulls Housing Finance on Wednesday refuted charges of financial irregularities, siphoning of funds and regulatory violations by promoters of the company in a public interest litigation (PIL) filed by advocate Prashant Bhushan in the Delhi High Court.
The housing finance company claimed Bhushan, who represents an NGO, did not do basic research before approaching the court and never made any effort to crosscheck information available in the public domain.
“Prashant Bhushan could have done very basic research of checking public records before filing malicious petition completely devoid of facts, with the ulterior motives of causing damage to the company and its 1.44 lakhs shareholders," the company said in a press release.
A similar petition was filed in June by Abhay Yadav, who had alleged that promoter Sameer Gehlaut and the company were involved in fund misappropriation. The case, which was in the Supreme Court, was later withdrawn by Yadav with an affidavit that said he was not aware of the contents and allegations mentioned in the complaints or the petition.
“Prashant Bhsuahn has blindly copied the allegations from the petition of Abhay Yadav which was withdrawn before the Supreme Court," the release said.
Both Bhushan and Yadav filed petitions against the company at a time when Indiabulls Housing is in talks with Lakshmi Vilas Bank (LVB) for a possible merger. Indiabulls also said the company was subject to various attacks due to “vested interest" since the announcement of the merger in April.
The bank was on Saturday placed under the Reserve Bank of India’s prompt corrective action (PCA) list. This has raised concerns over the possibility of merger with Indiabulls, as it will now be under tighter scrutiny by the banking regulator.
Shares of Indiabulls Housing Finance Ltd plunged about 38% on Monday, their maximum fall since listing, after the Delhi high court agreed to examine allegations of financial irregularities against the company’s promoters.
Meanwhile, the Delhi High Court on Tuesday issued notice to the NGO, which alleged financial irregularities against Indiabulls Housing, to respond in two weeks on the plea seeking proceedings against advocate Prashant Bhushan for perjury.