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Indiabulls Housing Moves SC After Allegations Of Siphoning Off Rs 98,000 Cr Surface

Indiabulls Housing Moves SC After Allegations Of Siphoning Off Rs 98,000 Cr Surface

Indiabulls Housing Moves SC After Allegations Of Siphoning Off Rs 98,000 Cr Surface
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Indiabulls Housing Finance Ltd (IHFL) on June 12, 2019 moved the Supreme Court (SC) after the alleged allegation of siphoning off Rs 98,000 crores of public money surfaced. The company is now seeking the apex court’s intervention and an urgent listing of a plea filed against it.  

The company has denied the allegations and called them ‚Äėbizarre.‚Äô¬†According to the senior advocate A M¬†Singhvi, representing IHFL, frivolous allegations have been levelled against the company in the petition, which has been leaked to the media. After the media reported the incident, the company had incurred loss of around¬†Rs¬†7,000¬†crore¬†of its market share.¬†

The bench is likely to take a decision on the listing of the plea on June 12, 2019.  

What does the petition say? 

The petition filed with the apex court alleged that chairman of IHFL Sameer¬†Gehlaut¬†and other directors of the company had siphoned off¬†crores¬†of money for their personal use. The petition filed by one of the company‚Äôs shareholder¬†Abhay¬†Yadav, also says that¬†Gehlaut¬†with the help of Harish¬†Fabiani, an NRI based in Spain, created multiple shell companies. IHFL then loaned a large sum of¬†money to these companies under ‚Äėbogus and non-existent pretexts.‚Äô¬†This money, the plea alleged, was further transferred as a loan to other companies, most of which were directed or operated by¬†Gehlaut, his family members or other IHFL directors.¬†The plea also claimed that while the dummy and shell companies were being built, nearly¬†Rs¬†1,700¬†crores¬†from unknown sources,¬†were¬†used, which¬†is¬†illegal and forbidden under the Prevention of Money Laundering Act.¬†

The petitioner has now sought directions from the Securities and Exchange Board of India (SEBI), the Centre, Reserve Bank of India (RBI), Income Tax Department or the competent authority to restore, protect and conserve the siphoned off money. 

With inputs from Housing News

Last Updated: Thu Jun 13 2019

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@@Thu May 09 2019 11:20:13