Indiabulls Housing Finance refutes charges of siphoning of funds

Wednesday 12th June 2019 05:56 EDT

Indiabulls Housing Finance has denied charges of misappropriation of around £9.8 billion by its chairman Sameer Gehlaut and other directors and said that the allegation is "bizzare" and is meant to malign the reputation of the company. The statement comes after a plea was filed in the Supreme Court seeking legal action against Indiabulls Housing Finance, Gehlaut and the directors for the alleged misappropriation of public money. The petition alleged that money worth millions were siphoned off by Gehlaut and the directors of the firm for their personal use.

"The total loans on the books of Indiabulls Housing are approx £9 billion. The allegation of siphoning-off £9.8 billion is bizarre," the company said in a regulatory filing. The company said that a racket of blackmailers has been trying to extort money from Indiabulls over the last two months threatening to file complaints to various government departments alleging siphoning off of £5.5 billion if £1 milllion was not paid to them, following which the company filed an FIR on June 4.

It further said that one of the people involved in the blackmail was arrested on June 7. Following the arrest, the group of people involved floated another complaint enhancing the amount to £9.8 billion, it said. The company said the writ petition is a "desperate attempt" to malign its reputation. Indiabulls Housing Finance also mentioned that the petitioner had bought four shares in the company a month back.

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