Indiabulls Housing Finance fell 4.95% to Rs 242.85, extended steep losses since Wednesday, 23 September 2019.
Shares of Indiabulls Housing Finance plunged 44.44% in six trading sessions to its current market price of Rs 242.85, from a recent closing high of Rs 437.10 on 23 September 2019.Indiabulls Housing Finance, after market hours on Friday, 27 September 2019, informed that the public interest litigation (PIL) filed by Citizens Whistle Blower Forum came up for hearing before the Delhi High Court on Friday, when the Court was informed that the averments made in the petition are a pack of lies motivated by vested interest and has been filed without any research even on publicly available records of the company.
Senior Counsel Mukul Rohtagi and Dr. Abhishek Singhvi arguing for the company stated that the false and fabricated allegations made against the company in respect of loans granted to four business groups fall flat merely on the fact that 2 of these loans to business groups are fully closed with no outstanding dues and loans to 2 other business groups are secured loans granted in the normal course of business and are being serviced regularly as per repayments schedule.
Further, these 2 business groups have no loans or investments of any kind whatsoever in any promoter companies. The High Court has listed the matter for 13 December 2019 to allow respondent company to place on record relevant documents in support of its rebuttal to the allegations contained in the PIL which has been filed at behest of Prashant Bhushan (who has been reprimanded in the past by the Supreme Court of India for filing frivolous PILs).
The company has filed an application before the Delhi High Court for Perjury and misrepresentation under oath against Prashant Bhushan for willfully filing a PIL full of false and incorrect information and thereby causing wilful reputational loss to the company. The Perjury petition against Prashant Bhushan will come up for hearing next week. Further the company has also filed criminal defamation case against Prashant Bhushan under Sections 499, 500 and 501 under Indian Penal Code for conniving with blackmailers and defaming the company.
Earlier this month, the Delhi High Court restrained BJP leader Subramanian Swamy and social media giants from disseminating any false, offending or defamatory allegations against Indiabulls Housing Finance.
In late July 2019, BJP Leader Subramanian Swamy had sent a letter to PM Modi, accusing the Indiabulls group of Rs 1 lakh crore fraud. Swamy had urged PM Modi to institute a Special Investigation Team of the Central Bureau of Investigation (CBI), Enforcement Directorate (ED), Serious Frauds Investigation Office (SFIO) and Income Tax (IT) officials to probe into the money laundering of the Indiabulls group by siphoning the funds of the National Housing Bank.
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The Delhi High Court in a civil suit filed by Indiabulls Housing Finance directed Twitter, Facebook, WhatsApp etc. to remove/take down and/or expunge the offending false messages from their portals within two weeks from 13 September 2019.
Meanwhile, the S&P BSE Sensex was up 98 points or 0.25% to 38,765.64.
On the BSE, 34.23 lakh shares were traded in the Indiabulls Housing Finance counter so far compared with average daily volumes of 16.76 lakh shares in the past two weeks. The stock hit an intraday high of Rs 274.40. It hit an intraday low of Rs 226.10, which is also a 52-week low for the counter. The stock hit a 52-week high of Rs 1,003.80 on 3 October 2018.
Indiabulls Housing Finance's consolidated net profit fell 24% to Rs 801.53 crore on a 4.5% decline in total income to Rs 3,886.12 crore in Q1 June 2019 compared with Q1 June 2018.
Indiabulls Housing Finance's primary business activities are to carry on business of investing and finance related activities and fee income, which mainly consists of financial service related fee income from services, selling of insurance products as a licensed corporate agent and other related ancillary services.
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