IRB Infra tanks 2% as CBI chargesheets CMD Virendra Mhaiskar

NEW DELHI: Shares of IRB Infrastructure plunged 2 per cent on Thursday after the Central Bureau of Investigation ( CBI) filed a chargesheet against chairman and managing director Virendra Mhaiskar, and 17 others, in a case pertaining to government land grab for a proposed township project.

CBI is looking into whether there was a criminal conspiracy and attempt to cheat the state by grabbing massive tracts of land at village Pimpaloli along the Pune-Mumbai expressway, TOI reported.

Following the announcement, the stock fell 2.29 per cent to close at Rs 205.20 on BSE.

The case was initiated in 2009 by RTI activist Satish Shetty, who was murdered in January 2010.

Foreign brokerage HSBC has downgraded the IRB Infra scrip to hold, until further clarity emerges on the development.

IRB’s shares will be under pressure and will not be driven by business fundamentals, HSBC said in a note.

IRB Infrastructure Developers Limited is the holding company of the IRB Group. Its subsidiary, Ideal Road Builders Private Limited, was given the contract to maintain the expressway from August 2004 to 2019, the TOI reported.