June 12, 2019

Indiabulls Housing Finance Ltd Moves SC To Counter Fund Misappropriation Charges; Dismisses Allegations As ‘Bizarre’

[ By Bobby Anthony ]


Indiabulls Housing Finance Ltd (IHFL) has moved the Supreme Court seeking an urgent listing of a plea filed against it in which it has been alleged that the company misappropriated Rs 98,000 crore of public money.

Appearing for Indiabulls, senior advocate A M Singhvi mentioned the matter for urgent listing before a vacation bench comprising Justice Indira Banerjee and Justice Ajay Rastogi.

The bench was told that the plea which had leveled frivolous allegations Indiabulls was leaked to the media, due to which the company incurred a loss of around Rs 7,000 crore of its market share.

The bench heard the matter and stated that it would take a decision about the listing of the plea during the course of the day.

Earlier, Indiabulls Chairman Sameer Gehlaut and other directors of the company had dismissed allegations of any misappropriation, stating that these are “bizarre” and were meant to malign the reputation of the company.

Their statement came after the petition was filed in the Supreme Court on June 10, seeking legal action against Indiabulls and its top brass for allegedly misappropriating public money.

The petition alleged that money worth thousands of crores have been siphoned off by Gehlaut and directors of the company for their personal use.

The company had also stated in a regulatory filing that total loans on the books of Indiabulls Housing are approximately Rs 90,000 crore and hence the allegation of siphoning off Rs 98,000 crore is “bizarre”.

Indiabulls claimed that some blackmailers had been trying to extort money from the company over the last two months by threatening to complain to various government departments alleging siphoning off of Rs 55,000 crore, if Rs 10 crore was not paid to them.

The company stated that after this episode, it had filed a First Information Report (FIR) on June 4 and that one of those involved in the alleged blackmail attempt was arrested on June 7.

After the arrest, the same set of blackmailers floated another complaint as well as enhanced the amount concerned to Rs 98,000 crore, the company claimed.

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