Indiabulls Housing to face probe

A new lawsuit has asked for a probe into the business dealings of Indiabulls Housing Finance Limited and will soon be filed in the Delhi high court. This is the latest in a series of incidents that have been aimed for a spotlight at the non-banking financial company.

A public interest litigation (PIL) has been filed by the Citizens Whistle Blower Forum – an organisation whose members include former Delhi high court Chief Justice A.P. Shah and advocate-activist Prashant Bhushan – has alleged that the promoters of Indiabulls Housing have committed “various illegalities and violations”.

In particular, the lawsuit has claimed that Indiabulls Housing, its promoters and various group companies have advanced “dubious loans” to companies owned by some of India Inc’s largest corporate houses. These corporate groups in turn have allegedly routed the money “back to the accounts of companies owned by the promoters of Indiabulls so they can increase their personal wealth”.

the PIL notes have stated that the documents available with the petitioner organisation show that IBHFL and companies owned by its promoters have been involved in round tripping of funds in violation of the relevant laws and policy guidelines and they have also not disclosed sources thereof and their books of account also did not show the true state of affairs.

Through its petition, the Citizen Whistle Blower Forum has sought an “in-depth, thorough and time-bound investigation” into the alleged “illegalities, violations and siphoning committed by the promoters of Indiabulls Housing Finance Limited”. The PIL has identified five corporate houses, with documentation that has allegedly received huge loans from Indiabulls which had then invested that money back into the NBFC. 

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