The Delhi High Court on February 2 dismissed a Public Interest Litigation seeking investigation against alleged illegalities, violations and siphoning of funds committed by the former promoters of Indiabulls Housing Finance Limited (IBHFL).
The court said, "Due to articles published in magazine and newspaper, the tweets made by members of petitioner-firm or a Member of Parliament, the shareholders of accused-companies (Indiabulls) were jolted and they were made to suffer huge losses." The PIL was filed in 2019 by a Non Governmental Organisation (NGO) called Citizens Whistle Blower which is linked to lawyer Prashant Bhushan.
A two bench of the Delhi HC led by Justice Suresh Kumar Kait noted that National Housing Bank (NHB) and the Ministry of Corporate Affairs (MCA) are already carrying out necessary investigation in the case. Furthermore, the court held that the NGO had levelled allegations against IBHFL without sufficient evidence to substantiate it. The order said "this court is of the opinion that the allegations levelled by the petitioner are not substantiated as these are not supported by any evidence."
Furthermore, the court opined that the evidence submitted by the NGO such as the balance sheets is already available on the website of these companies and is thus already in public domain.
The court also held that the jurisdiction to carry out investigation lies in the realm of the investigating agencies and a court has no authority to interfere in the investigation unless there is grave miscarriage of justice or misuse of process of law
What was the case?
The plea filed by the NGO sought an Special Investigation Team (SIT) led probe into the alleged illegalities, siphoning of funds and violations committed by the promoters of IBHFL.
The NGO had alleged that over the years, IBHFL has taken huge loans from various public and private banks which means that public money is at stake, along with the money invested in IBHFL by its shareholders and investors.
The plea alleged that IBHFL, through its promoters and their various group firms and subsidiaries, has been advancing dubious loans to companies owned by large corporate groups.
Indiabulls had earlier opposed the plea saying it was "malicious" and "mala fide" petition which was causing loss to its business and reputation.
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