The Delhi High Court on Friday issued notices to Indiabulls Housing Finance Limited (IHFL), the banking and markets regulator, among others, in a plea seeking a time-bound, SIT investigation into various alleged illegalities, siphoning of funds, and violations committed by the promoters of the company and its subsidiaries.
The court has given two weeks’ time to the promoters of the company, the Securities and Exchange Board of India (Sebi), and the Reserve Bank of India (RBI), and the corporate affairs ministry for a reply.
The plea sought directions to the Registrar of Companies (RoC), Serious Fraud Investigation Office (SFIO), National Housing Bank (NHB), RBI, Sebi to take action against IHFL and its promoters/owners.
The petition has been filed by Citizens Whistle Blower Forum, a registered organization working to provide a platform to whistleblowers.
“IBHFL (Indiabulls Housing Finance Limited) through its promoters and their various group companies and subsidiary companies has been advancing dubious loans to companies owned by large corporate groups which in turn have been routing the money back into the accounts of companies owned by the promoters of Indiabulls, so as to increase their personal wealth. The primary documents such as balance sheets, ROC records which are available in the public domain suggest a vast web of companies involved in various dubious deals, loans, investments, round tripping of funds to benefit the companies owned by the promoters of Indiabulls,” the petition said.
The high court said the public interest litigation alleging round tripping of funds by IHFL deserves to be heard.
Indiabulls Housing’s shares fell 6.1% on Sensex at the end of trading on Friday.
The plea also sought direction to the corporate affairs ministry to conduct an investigation, through the SFIO, into the financial affairs of IHFL and companies involved in transactions with it. It sought directions to the RBI and NHB to investigate and audit financial affairs of IHFL.
It also sought direction to Sebi to conduct a thorough inquiry and investigation into the affairs of IHFL.
Delhi HC issues notice to Indiabulls, RBI on plea seeking SIT probe into alleged illegalities committed by the company’s promoters.