Bribery scam: DB Realty denies involvement

In an exclusive interview with CNBC-TV18, Shahid Balwa, MD, DB Realty has clarified that the company has not indulged in bribing practice for loans.
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Nov 30, 2010, 12.43 PM | Source: CNBC-TV18

Bribery scam: DB Realty denies involvement

In an exclusive interview with CNBC-TV18, Shahid Balwa, MD, DB Realty has clarified that the company has not indulged in bribing practice for loans.

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Bribery scam: DB Realty denies involvement

In an exclusive interview with CNBC-TV18, Shahid Balwa, MD, DB Realty has clarified that the company has not indulged in bribing practice for loans.

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Shahid Balwa, MD, DB Realty

Q: You clarify that you have had no conversion with Mr Nair and contrary to reports you did not indulge in any kind of illegal kind of a grant to get the Rs 200 crore loan out?

A: I would like to state that I have never ever met Mr Nair in my life. I have never been to the office of LIC Housing, so I do not understand the basis of this report. In fact when our executives went to submit the relevant documents to the authorities they said that they already had these documents and there was no question that they wanted to ask us in this regard. I really have no reason to believe and I am sure about of what I am saying, neither me nor anyone in my organization has indulged in any practice of bribing anyone for loans. As I said we were sitting on liquidity so where was the need for us to go out and bribe somebody to get loans.

Q: You had a conference call with a lot of your investors a few days back, if I am not mistaken, some time last week. If you could have established the credence of what you are saying, your stock should have stopped falling then, but has fallen another 25-30% post that. In that conference call or in that interaction with your investors, what came out as their principle concern because we are also trying to understand why your stock has been singled out for punishment more than any other real estate company?

A: The stock market is obviously governed by demand and supply. When malicious reports like the ones that we have been seeing come out in the media and they single us out in the context of the entire episode, investors have become jittery. The fact of the matter is that if you refer to the Economic Times report on Thursday, if you look at all the loans that have been taken by other corporate, the smallest loan that has been granted or that has been syndicated by Money Matters. Money Matters has been only syndicated one loan and that too was done on a competitive basis on the basis of a beauty parade that we had undertaken or that we conducted in our office of investment bankers.

After this malicious campaign was spread through the media, the reach of the media is much greater than the reach of my conference call. So, overall a period of time people will realize, investors will realize and the media at large will realize that we had no role to play in this scam or any other scams that have been spoken about. The investors will see the results of our company going forward this quarter, the next quarter and thereafter. The value of the assets that we have is significantly higher than the value of our stock. That is all I can say and that is all I can say to my investors and the public at large.

We have indulged in no wrong doing. This trial by the media will come to an end. But at the end of the day when the trial through the judicial process is completed then everything will come out clean in the open domain. At that point in time unfortunately we will not have the media and we will not have the media publicizing it. That is the way things are happening in this country, as Ratan Tata described we are in the Banana Republic.

For complete interview watch the videos.

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