Shares of five Indiabulls Group companies were up by 4.54% to 11.76% after the government filed an affidavit in the Delhi High Court saying there are no irregularities in Indiabulls Housing as far as loans given to some of the entities.
Meanwhile, the S&P BSE Sensex was down 354.59 points or 0.86% to 40,775.58.Indiabulls Housing Finance (up 11.76%) and Indiabulls Real Estate (up 4.54%) advanced. Indiabulls Integrated Services and Indiabulls Ventures were locked in 5% upper circuit.
The Ministry of Corporate Affairs (MCA) on Thursday, 28 September 2019, found no irregularities in loans extended by Indiabulls Housing Finance (IBHFL) to five companies, as alleged by a Public Interest Litigation (PIL).
"As far as the loans given by IBHFL to five companies, viz, DLF, Amricorp, Vatika, ADAG and Chordia which are the subject matter of the instant Writ Petition, the report states that loans given to Amricorp, ADAG and DLF have been repaid and loans given to other two entities viz Vatika and Chordia reported to be "Standard Accounts", MCA said in its affidavit.
In September, the petitioners had alleged in the PIL that the loans were given to shell companies. The company had refuted the allegations in the Court and had submitted documentary proofs and bank statements with respect to these loans. Subsequently, the court had issued a perjury notice to the petitioners.
The facts stated in government affidavit, filed on Thursday, provides a true and clear picture about the allegations made in the PIL, IBHFL said in a statement.
Meanwhile, a foreign brokerage firm retained buy on the IBHFL stock with a target price at Rs 450 against Rs 350 and said that clarity on court case can lend relief to the company. The current valuation is attractive while risks are receding on court cases. An uptick in growth can drive rerating, the brokerage added.
On Thursday, Rajya Sabha MP and veteran Bharatiya Janata Party leader Subramanian Swamy tweeted In this hour of economic tailspin, wage earners & middle class families who have placed in trust their life savings in financial companies should be generously given back their investments & that in turn Banks should have liberal attitude toward these companies on pending loans.
Many have responded with their willingness but surprised to receive from India Bulls a transparent response sending company documents with bank statements. I have asked my legal team to examine these documents, he added.
The Indiabulls Group is a diversified financial services group with interests in housing finance, consumer finance and personal wealth.
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