New Delhi, Feb 2 – The Delhi High Court has dismissed a plea seeking a thorough and time-bound investigation by a Special Investigation Team (SIT) into alleged illegalities, violations, and fund siphoning by the promoters of Indiabulls Housing Finance Ltd (IBHFL) and its subsidiaries.
A bench of Justices Suresh Kumar Kait and Neena Bansal Krishna said that the National Housing Bank (NHB) has already conducted necessary investigations, and the Union Ministry of Corporate Affairs is further probing the matter.
The court noted that the allegations made by the Citizens Whistle Blower Forum lacked substantiation, and supporting evidence.
It noted that a significant portion of the alleged loans had been repaid by the respondent companies, and loans were advanced against mortgages and securities provided by the borrowers.
The government functionaries had initiated inspections, and ongoing investigations were in progress.
In its decision, the court said: “Finding no merit in the present petition, it is accordingly dismissed. Pending applications are disposed of as infructuous.”
The plea had sought directions on various regulatory bodies, including the Union Ministry of Corporate Affairs, Registrar of Companies, Serious Fraud Investigation Office, National Housing Bank, RBI, and SEBI, to take action against IBHFL and its promoters.
The petitioner organisation had accused IBHFL and its promoters of advancing dubious loans to companies owned by large corporate groups, subsequently routing funds back to the accounts of Indiabulls promoters to increase their personal wealth.
The court said that due to articles in the media and tweets, shareholders suffered losses, but it affirmed that the jurisdiction of investigation lies within the investigating agency, and the court cannot interfere unless there is a grave miscarriage of justice.
It concluded that necessary investigations had been carried out by NHB, and the Ministry of Corporate Affairs was in the process of further investigation, dismissing the plea for a separate SIT probe.
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