Indian developers slump on bankruptcy and tax woes; HDIL, Oberoi shares dip

The share slump highlights India's intensifying demand slowdown

Housing Development & Infrastructure Ltd. fell to a record and Oberoi Realty Ltd. dropped the most in two years as authorities intensify their clean up of India’s struggling property sector.

Bankruptcy proceedings will begin against HDIL after creditor Bank of India filed an application, the developer said in a filing Tuesday, adding that it will appeal the decision. Separately, India’s tax office is investigating Oberoi Realty on allegations of improper transactions and officials raided 30 locations across India related to the group, according to people with knowledge of the matter, who asked not to be identified as the information isn’t public.

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