New Delhi [India]: Shares of real estate major DLF slipped by 4.7 per cent in the morning trade on Friday even though the company denied allegations of a relationship with the Indiabulls Group.
A draft of a purported Public Interest Litigation has been circulating on social media which makes certain unfounded allegations in respect of the relationship between DLF Group and Indiabulls Group, more specifically Indiabulls Housing Finance Ltd. Similar allegations had also been circulated a few months back.
"The said allegations are malicious and are completely and unambiguously denied by us," DLF said in regulatory filings at stock exchanges.
DLF Group has had financing transactions with the Indiabulls group since 2011 and all such transactions were completed on an arm's length basis. Such transactions were fully compliant with all legal requirements and regulations, it said.
"Following inflow of money through qualified institutional placement (QIP) and contribution made by promoters towards warrants, we repaid all loans taken from Indiabulls by June 30, 2019 ahead of schedule, except for one loan of Rs 175 crore which was down sold by IBHFL to a foreign bank and is reflected in our books as such. As on date, no other amounts are owed by any DLF group company to IBHFL or any other Indiabulls company," it said.
"We also emphatically deny any allegations of any other irregularity in any aspect of our past relationship with Indiabulls. It may be pointed out that in 2014, a few years after we had commenced the financing relationship with Indiabulls, in a completely unrelated transaction, we had advanced certain money for a potential real estate opportunity with a company owned by promoters of Indiabulls," the company added.
The DLF continued, "However, due to lack of tangible progress, the transaction was eventually called off and the entire money was refunded. As on date, the DLF Group has no exposure or investment in the Indiabulls group or any of the ventures of its promoters."
"We once again reiterate that allegations to the above effect are completely baseless and unfounded. We are issuing this clarification only in the interest of our investors and in order to put at rest unnecessary speculation on this issue," it said.
At 11:50 am, DLF was trading 4.7 per cent lower at Rs 151.80 per share while Indiabulls Housing Finance dipped by 5.5 per cent to Rs 423.05 per share.