Now, DLF with all its present and past controversies still forms a part of the Nifty and rubs shoulders with corporates that have virtually no blemish.
The Nifty is an index barometer that is followed across the globe by fun managers, analysts and investors alike. Within these stocks Nifty (50) stocks to have a company like DLF with its hazy background in corporate governance and accounting standards does little justice to the investor fraternity.
It's now time that the India Index Services and Products (IISL), an NSE-Crisil joint venture that maintains Nifty index to take a look at whether DLF should be replaced from the Nifty stocks, given the latest allegation of favours extended by the company to Robert Vadra, Son-in-Law of Congress President Sonia Gandhi.
This not the first instance that the company's poor governance standards and transparency issues have come to the fore.
Earlier this year, the Corporate Affairs Minister had ordered an inquiry into its books following complaints from numerous investors.
According to a CNN IBN report senior officials of the ministry said they've received several complaints alleging that there were anomalies in the company's books.
The same report said that SEBI sent a reference to the Ministry in this regard.
Earlier, research firm Veritas called the company a crumbling edifice. Veritas came down heavily on DLF and accused DLF of "questionable dealings" with privately held arm DLF Assets, which led to to a higher purchase price for DAL at the time of the merger of the two firms. DLF minority shareholders lost out in the process, the Veritas report said.
Now, the latest allegations by India Against Corruption (IAC) anti-graft crusaders Arvind Kejriwal and Prashant Bhushan allegeing that K P Singh-led DLF Ltd extended undue favours to Sonia Gandhi's son-in-law, Priyanka Gandhi's husband Robert Vadra.
It's time now that the India Index Services and Products pushes DLF out of the Nifty and gets a company with greater integrity and the highest compliance standards. After all, the Nifty is an important benchmark index and cannot have companies with questionable accounting practices and integrity.
There are several worthy companies that can surely replace DLF in the Nifty - it's time for those concerned to act.