IVRCL has plunged almost 9% to Rs 38 on reports that the company’s chairman and managing director, Sudhir Reddy, is under the Central Bureau of Investigation's (CBI) scanner for alleged irregularities in a Tsunami housing project in Puducherry.
“The CBI filed an FIR in a Puducherry court said that IVRCL was issued work order to construct houses in Tsunami-affected areas at the rate of Rs 4.9 lakh against the provisions of the government Order which stipulated Rs 1.5 lakh-Rs 1.75 lakh each house," reports suggest.
The CBI alleged that there was a loss to the tune of Rs 35 crore to both the Puducherry government and the central government.
A combined 1.09 million shares have changed hands on the counter on morning deals on the NSE and the BSE.