Indiabulls Housing Finance shares rise over 12% after MCA gives clean chit on loans to five firms

Shares of Indiabulls Housing Finance climbed over 12% on November 29 after the government said in Delhi High Court that it did not find any irregularities in loans given to five companies.

Reacting to the development, Indiabulls Housing stock price opened 6.82% higher today and later climbed 12.75% to the day's high of Rs 376.8 on BSE.

Indiabulls Housing stock has gained 44.18% in the last three straight sessions.  Shares of Indiabulls Housing trades higher than 5, 20 and 50-day moving averages but lower than 100 and 200-day moving averages.

Volume-wise, nearly 47.4 lakh and 755.5 lakh shares changed hands on BSE and NSE, respectively. Market depth data on BSE suggest 48% buying against 52% selling on the stock.

Even as the stock has declined 58% year-to-date, it has risen 62% in one month.

The Ministry of Corporate Affairs (MCA) found no irregularities in loans extended by Indiabulls Housing Finance to five companies namely DLF, Amricorp, Vatika, ADAG and Chordia, as alleged by a Public Interest Litigation (PIL), a regulatory filing by the firm said.

The Ministry of Corporate Affairs, Government of India, filed an affidavit in the court that stated, "As far as the loans given by IBHFL to five companies, viz, DLF, Amricorp, Vatika, ADAG and Chordia which are the subject matter of the instant Writ Petition, the report states that loans given to Amricorp, ADAG and DLF have been repaid and loans are given to other two entities viz Vatika and Chordia reported to be 'Standard Accounts'."

The petitioners had alleged in the PIL that the loans were given to shell companies. The company had refuted the allegations in the court and had submitted documentary proofs and bank statements with respect to these loans.

"Subsequently, the Hon'ble Court had issued a Perjury Notice to the petitioners," the company said in the filing.

The facts stated in government affidavit, filed today, provide a true and clear picture about the allegations made in the PIL, the filing added.

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