PIL filed against Indiabulls Housing Finance; shares crack 6%

Indiabulls Housing Finance case: The company was accused of siphoning Rs 98,000 crore of public money. A petition was filed before the Supreme Court in June seeking legal action against the company, its chairman and directors. It was alleged that the chairman and the directors siphoned the money for their personal use. The legal proceedings in the matter are currently on. (File image)

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Shares of Indiabulls Housing Finance cracked 6.11 percent to Rs 389.45 on BSE on September 27 amid reports that a public interest litigation (PIL) has been filed against the company in the Delhi High Court.

CNBC TV18 reported that a PIL against the company has been filed, alleging round-tripping of funds by the company which deserves to be heard.

The Delhi HC has issued a notice to the company, RBI, SEBI and MCA and next hearing of the case will be held on December 15.

Recently, credit rating agency CARE revised the company's credit rating.

CARE revised the long-term rating from CARE AAA to CARE AA+, the perpetual debt programme rating from CARE AA+ to CARE AA, and reaffirmed short-term rating at CARE A1+.

The main reasons for the revision in the rating is the progress in process of merger with Lakshmi Vilas Bank and the potential transition challenges thereof, challenging funding environment for NBFCs and HFCs and moderation in asset quality, company said in a release.