Indiabulls loses Rs 6,000 crore following charges of money laundering

Shares of Indiabulls group companies were under pressure on Monday, falling by up to 10 per cent intra-day on the BSE, after Rajya Sabha member Subramanian Swamy sent a letter to Prime Minister Narendra Modi, accusing the group of laundering more than Rs 1 lakh crore. The group, however, rejected the charges.

The letter alleged that Indiabulls group has created more than 100 shell firms and took loans from National Housing Bank (NHB). It then re-alloted or siphoned it off to many real estate firms in Maharashtra, Delhi, Gurugram, Bengaluru and Chennai in the range of Rs 30 crore to Rs 1,000 crore.

Swamy urged PM Modi to institute a special investigation team of the Central Bureau of Investigation (CBI), Enforcement Directorate (ED), Serious Frauds Investigation Office (SFIO) and Income Tax (IT) officials to probe the charges.

Among individual stocks, Indiabulls Housing Finance (Rs 562), Indiabulls Ventures (Rs 244) and Indiabulls Real Estate (Rs 96) tumbled 10 per cent each, while Indiabulls Integrated Services was locked in the lower circuit of 5 per cent at Rs 122 on the BSE. Lakshmi Vilas Bank, too, slipped 10 per cent to Rs 55 in intra-day trade on Monday. In comparison, the S&P BSE Sensex was down 0.77 per cent at 37,591 points at 11:50 am.

The group rejected the allegations, saying that "loans outstanding as on date from National Housing Bank (NHB) to Indiabulls Housing is zero". Indiabulls Housing, in its history, has never taken any loan or refinancing facility from NHB. The total loan book of Indiabulls Housing is approximately Rs 87,000 crore, it said.

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