Bhushan alleged that IBHFL through its promoters, subsidiary companies and various group of companies, has been advancing dubious loans.
NEW DELHI, Feb 4 (The CONNECT)- Indiabulls Housing Finance today said the Delhi High Court has dismissed a writ petition filed advocate Prashant Bhushan through his firm Citizens Whistle Blower Forum calling for inquiry by a special investigation team (SIT) against the company alleging serious illegalities, violations and siphoning of funds.
The petitioner has also sought directions to the Ministry of Corporate Affairs, Registrar of Companies (ROC), Serious Fraud Investigation Office (SFIO), National Housing Bank (NHB), Reserve Bank of India (RBI), Securities and Exchange Board of India (SEBI) to take action against IBHFL and its promoters/owners.
Bhushan alleged that IBHFL through its promoters, subsidiary companies and various group of companies, has been advancing dubious loans to companies owned by large corporate groups which in turn have been routing the money back to the accounts of companies owned by the promoters of Indiabulls, so as to increase their personal wealth.
Justices Suresh Kumar Kait and Neena Bansal Krishna in their order on Friday found “no merit” in petition.
“We are pleased to inform that after several hearings over the years, the Hon’ble High Court of Delhi on February 2, 2024, pronounced its order of dismissal of the PIL that was filed against the Company and its [erstwhile] promoters in 2019 by Prashant Bhushan through his firm, Citizens Whistle Blower Forum,” the company said in a regulatory filing.
Tye judgement read: “In the considered opinion of this Court, due to articles published in magazine and newspaper, the tweets made by member of the petitioner-firm or a Member of Parliament, the shareholders of accused-companies were jolted and they were made to suffer huge losses.”
“It is settled position of law that the jurisdiction of investigation lies within the realm of investigating agency and a Court has no authority to interfere in the investigation until and unless there is grave miscarriage of justice or misuse of process of law. The investigation has to be transferred to CBI or SIT or any other agency only in exceptional cases and not as a matter of routine. There is no dispute to the position that necessary investigation in the present case has already been carried out by NHB and also the Ministry of Corporate Affairs is in the process of further investigation,” the court said.
IBHFL Company’s Vice Chairman, Managing Director and CEO, Gagan Banga commented: “In the regular conduct of its business, a lender like ourselves faces multiple litigations. The bigger cases that make the news are instigated by well-connected borrowers that borrow from the Company public monies lent to us by banks and debt markets, and then default on this. Pursuit of recovery by repossessing the property that we have lent against, and enforcing collateral, is our professional and fiduciary responsibility. It is my commitment to the Company’s stakeholders, that as borne out in this protracted litigation, no matter how difficult the path, we will not be discouraged in the fulfilment of our duties and responsibilities.”
