ET: Subramanian Swamy’s letter sends Indiabulls Housing stock tumbling

29 July 2019: Share of Indiabulls Housing Finance slumped over 7 per cent in Monday’s trade after BJP Leader Subramanian Swamy sent a letter to PM Modi, accusing the group of Rs 1 lakh crore fraud. The company has denied any wrongdoing.

Indiabulls Housing acknowledged Swamy’s letter being circulating in the social media that alleged embezzlement from NHB. The company told stock exchanges that loans outstanding as on date from NHB to Indiabulls Housing was nil.

“Indiabulls Housing, in its history, has never taken any loan or refinancing facility from NHB,” the company insisted. The total loan book of Indiabulls Housing is nearly Rs 87,000 crore.

That said, the clarification could not stop the scrip from falling 7.47 per cent in early trade. The stock was trading at Rs 577.50 at 9.25 am.

In a tweet earlier on Monday, Swami said: “It is necessary now to pierce the corporate veil, behind which the India Bull is situated. All leads on the “Bull” point to Ali Bibi alias TDK, and her 40 chors. But govt should see that unsuspecting investors are not unduly harmed.”

As per the alledged letter, Swami accused Indiabulls Housng Finance and its associates, is heading for a financial collapse and bankruptcy, resulting in large curroption issues in the real estate, banking , stock markets and loss of more than Rs 1 lakh crore f publicing and of National Housing Finance.

Swami said Indiabulls Housing Finance is headed for a financial collapse and bankruptcy, resulting in large corruption issues in the real estate, banking , stock markets and loss of more than Rs 1 lakh crore of public and of National Housing Finance.

The letter alleged that Indiabulls created more than 100 shell firms and took loans from NHB. It then re-alloted or siphoned it off to many real estate firms in Maharashtra, Delhi, Gurgram, Banglore and Chennai in the range of Rs 30 crore to Rs 1,000 crore. The letter suggested that the company accepted these amounts back as investments from the friendly real estate firms.

The Economic Times reported



Categories: Corporate Governance, Indian Earnings

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