Relief for Indiabulls as plea filed in Supreme Court by shareholder withdrawn

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Published: June 14, 2019 2:28:01 AM

The writ petition filed in the Supreme Court (SC) against Indiabulls Housing Finance and its group chairman Sameer Gehlaut by shareholder Abhay Yadav has been withdrawn, the company said on Thursday.

The housing finance company (HFC) had on Wednesday moved the apex court for an urgent hearing of the writ petition. The housing finance company (HFC) had on Wednesday moved the apex court for an urgent hearing of the writ petition.

The writ petition filed in the Supreme Court (SC) against Indiabulls Housing Finance and its group chairman Sameer Gehlaut by shareholder Abhay Yadav has been withdrawn, the company said on Thursday.

According to a statement by Indiabulls Housing, in the affidavit withdrawing the petition, Yadav has said he is unaware of the contents and allegations mentioned in the complaints or the petition.

“I now realise that such papers, affidavits, applications etc were signed by me have been misused to file false complaints and petitions against Indiabulls with mala fide intentions,” the company statement quoted Yadav as saying.

The petitioner apologised for having “unknowingly” signed the petition without realising its contents and had, therefore, decided to unconditionally withdraw the writ petition. He said four shares of Indiabulls were purchased in his name in May 2019 and thereafter he was asked to sign a detailed complaint which was addressed to various government officials and ministers, as per the statement from Indiabulls Housing.

The housing finance company (HFC) had on Wednesday moved the apex court for an urgent hearing of the writ petition. It had also told the court that Yadav had bought four shares of the company worth `3,000 ($42) on May 9, 2019 with the sole purpose of blackmail and extortion.

“Without seeking remedy at appropriate forum for grievances, the petitioner Abhay Yadav chose to file a plea in Supreme Court under Article 32 to damage the company and that the petitioner wilfully and intentionally is not coming forward and mentioning the writ petition as he doesn’t want the petition to be heard on merits,” Indiabulls Housing had said in a separate release on Wednesday.

Following the news of the withdrawal of the writ petition, shares of Indiabulls Housing rose 12.64% intraday and closed at `694.30, 11.78% higher than their previous close.

Indiabulls Housing is among the non-banking financial companies (NBFCs) that were hit by the liquidity crunch ensuing after the Infrastructure Leasing & Financial Services (IL&FS) crisis broke. Last month, Care Ratings has put a clutch of the company’s debt instruments — most of them AAA-rated — ‘on credit watch with developing implications’ on account of Indiabulls Housing’s decision to acquire the stress-laden Lakshmi Vilas Bank and its exposure to risky corporate mortgages.

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