Shares in IndiaBulls housing Finance crashed 7 per cent in trade, on reports of a PIL being filed in the Delhi High Court against the company.
"It has come to our notice through media that a PIL has been filed against the Company (IBH) & Promoters in Delhi High Court. The petition hasn't yet been filed in High Court as per its website, but leaked in social media with malicious intent to create turbulence in IBH stock price, " IndiaBulls Housing Finance stated in a release to the exchanges.
"The purported PIL admits that allegations are same as in earlier petition of Abhay Yadav which was subsequently withdrawn. Abhay in his statement admitted that allegations against IBH were based on incorrect & twisted data & he had filed it at behest of the mastermind of blackmailing racket who was then arrested & is in jail," the release to the exchange further added.
Instead of going to regulatory agencies & making complaint, the petitioners chosen route of PIL to attract attention & play into hands of blackmailers & corporate rivals at a sensitive time of merger process of IBH & Laxmi Vilas Bank. For past 3 months, IBH is undergoing inspections of regulators as part of merger process. IBH is determined to fight out petitioners in court, the statement to the exchange added.
IndiaBulls Housing Finance and Lakshmi Vilas Bank are looking at a merger and the approval for the same is pending with the Reserve Bank of India. The shares of the company were last traded at Rs 425, down 5.5 per cent.