Indiabulls Housing Finance declines 7% as ED conducts raids in Mumbai

NEW DELHI – Shares of Indiabulls Housing Finance plunged as much as 7 per cent in early trade on Tuesday after the Enforcement Directorate (ED) carried out raids at the Indiabulls Finance Center in Mumbai.

The scrip tumbled to a low of Rs 154 as against the previous close of Rs 166.30 on the National Stock Exchange. The stock recovered some gains after the sharp drop at open and was last trading 2.5 per cent lower.

On Monday, the Delhi and Mumbai divisions of the Enforcement Directorate on Monday together conducted searches at Indiabulls Housing Finance Ltd and its office Indiabulls Finance Centre in Mumbai.


According to reports, the probe agency’s investigation is based on an Enforcement Case Information Report (ECIR) filed by the Enforcement Directorate under the Prevention of Money Laundering Act, 2002 (PMLA) against Indiabulls Housing, its promoter Sameer Gehlaut, and a number of other linked companies and individuals.

The Delhi high court on Monday issued an order directing the Enforcement Directorate to not take any coercive action against Indiabulls, pursuant to the Enforcement Case Information Report. This follows the Bombay high court’s decision which had stayed the investigation, reports said.

The Enforcement Directorate had in April 2021, registered a case against Indiabulls Housing and its promoters, reports said.

Shortly after the raids, the company informed the stock exchanges that the complaints levelled against it were malicious.

The firm, in a regulatory filing, said the ED has sought information regarding certain clients in connection to a case that was registered against it by Ashutosh Kamble, a Palghar-based investor, in April last year, reports said.

"The ECIR registered by ED stems out of an FIR filed by one Ashutosh Kamble who is part of the long-running extortion and blackmail racket against the company," Indiabulls was reported as saying.

"The FIR is a copy-and-paste of earlier several patently false, vexatious and malicious complaints that the blackmailers have been circulating for last 3 years now, a similar allegations petition under name of Abhay Yadav was dismissed by the Supreme Court in 2019," it added.