Indiabulls Housing Finance shares plummet 10% after Subramanian Swamy’s letter to PM Modi alleging fraud

Indiabulls Housing Finance will get access to low cost deposits (File photo)

Indiabulls Housing Finance shares slump on Subramanian Swamy letter to PM Modi alleging financial fraud

Shares of Indiabulls Housing Finance tumbled heavily after Subramanian Swamy wrote a letter to Prime Minister Narendra Modi accusing the company of embezzlement of Rs 1 lakh crore from National Housing Bank. However, the housing finance company has denied the allegations made by Swamy and said it doesn’t owe anything to NHB. Today, on the BSE Indiabulls Housing shares had opened lower at Rs 590 per share against the previous close of Rs 624.15 per share. The shares fell nearly ten per cent to Rs 562.20 in the early trade on Swamy’s letter alleging financial fraud by Indiabulls Housing.

“ Loans outstanding as on date from NHB to Indiabulls Housing is zero. Indiabulls Housing, in its history, has never taken any loan or refinancing facility from NHB. The total loan book of Indiabulls Housing is approx. ? 87,000 Crores,” Indiabulls Housing said in an exchange filing. Earlier on Monday Swamy tweeted it was necessary to pierce the corporate veil, behind which the India Bull is situated.

In a letter, dated June 28, 2019, Swamy sent a letter to the Prime Minister, Swamy alleging that Indiabulls Housing is heading for a financial collapse, resulting in large corruption issues in the real estate, banking, stock markets and loss of more than Rs 1 lakh crore resulting large corruption issues in real estate sector, banking, stock markets and loss of more than Rs. One lakh crores of funds of public and of National Housing Bank.