Indiabulls under the Hammer

A PIL submitted in the Delhi HC by a civil society group – The Citizens Whistle Blower Forum (CWBF) asserts that Indiabulls Housing Finance Limited (IBHFL), along with corporates like the Reliance ADA Group and the DLF group, intends to “create private wealth out of public money” by extending loans worth billions of rupees to these large businesses through a complex maze of shell companies. These loans were advanced to companies having a considerably low paid-up capital (Rs. 100,000).

The petition claimed that the borrowing companies bestowed huge benefits to the key shareholders and the Chairman of IBHFL. Five corporates – Reliance ADA Group, DLF Group, Vatika Group, Americorp, and subsidiaries of the Chordia Group received loans worth Rs. 94.28 billion.

Citing similarities with the scams as those carried out by ICICI Bank and Dewan Housing Finance, the PIL terms these transactions as “round-tripping”. Some companies even capitalized the borrowed funds back into the Indiabulls Group as equity investments.

When asked to comment, IBHFL said that the PIL had not been filed and that this was just a ploy to negatively impact its share prices. Do you think the petition holds merit or was this just another publicity stunt?

Share on linkedin
Share on whatsapp
Share on twitter
Share on facebook
Share on email
May 12, 2022
Campus Activewear Limited
Click here to download the report Campus Activewear: Athleisure Super-Giant in the making? Overview Campus Active Ltd. (NSE: CAMPUS)...
April 30, 2022
Monthly Snapshot – April 2022
Click here to download the report When we think or hear of e-commerce websites, the first few names that...
April 2, 2022
Monthly Snapshot – March 2022
Click here to download the report The fact is that life is all about risks. You will never achieve...
March 2, 2022
Monthly Snapshot – February 2022
Click here to download the report The motive behind Russia’s invasion of Ukraine remains a mystery as of now....
February 1, 2022
Monthly Snapshot – January 2022
Click here to download the report As you wait for the Union Budget to be unveiled at 4 p.m.,...
January 11, 2022
The Paradigm Shift in Personal Finance post Pandemic
Introduction to Personal Finance Personal finance is the management of your money through saving and investing. It is concerned...
January 2, 2022
Monthly Snapshot – December 2021
Click here to download the report 2021 was undeniably the best year for Indian startups and the equity market,...
December 25, 2021
Aviation Sector
Industry Insights: The aviation industry has contributed significantly to global economic growth. The global aviation industry is expected to...
December 2, 2021
Monthly Snapshot – November 2021
Click here to download the report After months of farmer protests, Prime Minister Sri Narendra Modi has scrapped the...
December 1, 2021
Scope of REIT
A real estate investment trust (“REIT”) owns, operates, and finances income-generating real estate properties. REITs offer a pleasing investment...