No irregularity in Indiabulls Group Loans to 5 Firms: Corporate Ministry to High Court

The Ministry of Corporate Affairs (MCA) has informed the Delhi HC that it is examining the inspection reports of Indiabulls Housing Finance (IBHFL) & Indiabulls Venture Ltd & didn't find irregularity in loans given to the 5 companies as alleged by a Public Interest Litigation (PIL).

The ministry, in its affidavit submitted in the court, however, said that it is examining the violations pointed out in the inspection report. The ministry also said that 3 of the loans concerned have been repaid to Indiabulls Housing Finance (IBHFL) & the other 2 have been reported as "standard accounts".

The companies are Amricorp, ADAG, DLF, Vatika & Chordia.

The petitioners had alleged in the Public Interest Litigation (PIL) that the loans were given to shell companies.

The Ministry's affidavit further said that the remaining issues & violations reported in the inspection report are under examination & same will be dealt as per law.

"As far as the loans given by Indiabulls Housing Finance (IBHFL) to 5 companies, which are the subject matter of the instant writ petition, the report states that loans given to Amricorp, ADAG, DLF have been repaid & loans given to other 2 entities viz. Vatika & Chordia reported to be 'Standard Accounts'," the affidavit said.

The Ministry, however, informed the court that it is yet to receive the 3^rd inspection report, in respect to Indiabulls Real Estate Ltd (IBREL).

A Public Interest Litigation (PIL) was reported to have been filed on Sept 27 that alleged the round-tripping of funds by the company.

Indiabulls Housing Finance, in a statement, said: "The facts stated in govt affidavit, filed today, provides a true & clear picture about the allegations made in the Public Interest Litigation (PIL)."

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