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Plea against Indiabulls withdrawn from SC, stock rallies 12%

Updated: 13-06-2019 20:03 IST
Plea against Indiabulls withdrawn from SC, stock rallies 12%

Image Credit: ANI

In a major relief to Indiabulls Housing Finance, the petitioner who moved the Supreme Court accusing misappropriating public funds by its management, withdrew the plea Thursday, the company said. The petition filed by one Abhay Yadav who is a milk seller and holding just four shares of the second largest home finance company since May 9, 2019, and two others, had alleged that the company had misappropriated Rs 98,000 crore of public money, a charge termed as "frivolous and bizarre" by the company, had sought urgent hearing in the matter on Tuesday.

The petition was filed by Yadav, Vikas Shekhar who was arrested by Delhi police last Saturday, and one Kinsley Pandey, who is the solicitor in the case as well as a history-sheeter, according to the FIR details shared by the company with PTI. According to Karvy, the registrar of Indiabulls, the petitioners Yadav and Shekhar own just four and two shares of the company, respectively. While Yadav bought the shares on May 9, 2019, Shekhar purchased on December 14, 2018.

Indiabulls has found that Pandey and his family are history-sheeters with over half a dozen criminal cases against him in various Delhi courts. The Delhi police had arrested Shekhar on June 8 after an extortion and blackmailing complaint was filed by it with the Delhi Police Commissioner, the company told PTI.

There are over six criminal cases pending against Pandey and his family in various Delhi courts. Besides these personal criminal complaints, even banks and other financial institutions have also filed criminal cases against him at the Karkardooma and Patiala House courts. He was once booked under the Arms Act as well. The economic offences wing of the Delhi police has also opened a case against Pandey for impersonating himself as an OSD (officer on special duty) of a senior politician, the company said.

While withdrawing the petition through an affidavit, Yadav, who is milk vendor, said "he was not aware of the contents and allegations mentioned in the complaints or the petition", the company said in a statement. The development saw the company shares rallying almost 12 percent to close at Rs 694.30 on the BSE. The shares had tanked more than 15 percent and lost over Rs 7,000 crore of its market value since the petition was filed in the apex court in the past two trading sessions.

"I now realise that such papers, affidavits, applications etc were signed by me have been misused to file false complaints and petitions against Indiabulls with malafide intentions," the statement quoted Yadav as saying. It also quoted Yadav as saying, "four shares of Indiabulls were purchased in my name on May 9, 2019, and thereafter I was asked to sign a detailed bulky complaint which was addressed to government officials, ministers etc." "I apologise for unknowingly having signed the complaints, petition, applications etc without realizing its contents, therefore, I have decided to unconditionally withdraw the writ petition diary No 20710/2019," the statement said quoting Yadav.

The petition had named Sebi, RBI and other regulatory/law enforcement agencies as well. Indiabulls moved the Supreme Court Wednesday seeking urgent listing on the plea filed against it but the court, which is on summer vacation, had posted the matter for July.

Senior advocate AM Singhvi, appearing for Indiabulls, had Wednesday sought an urgent listing before a vacation bench comprising justices Indira Banerjee and Ajay Rastogi. Singhvi said frivolous allegations have been levelled against his client and the plea was leaked to the media in advance by the petitioner with mala fide intentions.

He said due to the media reports on the petition, his client has incurred a loss of around Rs 7,000 crore of its market value in the past three trading sessions. The petition had alleged that money worth thousands of crores were siphoned off by Sameer Gehlaut, the chairman of the firm, and the directors for their personal use.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)