Unitech falls over 6% in firm market
People familiar with the investigation say a loan was facilitated by Niira Radia, a lobbyist and owner of a firm that handles the public relations work of all Tata companies.
By ET Bureau & Agencies |
MUMBAI: Shares in Indian real estate firm Unitech Ltd fell more than 6 percent on Monday, after ET reported that investigative agencies were probing a financial transaction the firm entered into in 2007.
Investigators probing a telecoms license scandal were also examining a loan of Rs 1600 crore ($350 million) that Unitech received from unlisted Tata Realty and Infrastructure (TRIL).
TRIL told ET that no loan was given to Unitech, but said it did provide the realty company with interest in mobile operations with a "commercial advance".
"Unitech is one of the largest real estate companies in India, and as part of our regular business activities, we enter into transactions with several entities. Commenting on any such transaction is not only prejudicial to our business interest but also results in infringement of confidentiality agreements entered into with such entities," Unitech said in a statement to ET.
"Nevertheless, we would like to clarify that we have not availed any loan of Rs 1600 crore from Tata Realty," it said.
Officials at Tata Realty and Unitech could not immediately be reached by Reuters for comment.
At 9:36 a.m. (0406 GMT), shares in Unitech were trading down 3.8 percent at 57.70 rupees after having fallen as much as 6.7 percent, while the main Mumbai market was up 0.8 percent.
People familiar with the investigation say a loan was facilitated by Niira Radia, a lobbyist and owner of a firm that handles the public relations work of all Tata companies.
Radia, who had Unitech as a client at the time, was questioned about the transaction in the course of a lengthy interrogation by the Enforcement Directorate on Wednesday.
Radia, who finds herself at the centre of a media frenzy after tapes of her conversation with industrialists, politicians and journalists were leaked, told interrogators that while such an amount was given by TRIL to Unitech in 2007, she wasn’t sure of what the money was meant for, according to people familiar with the probe.
She also confirmed her involvement in structuring the agreement between the two companies, the people said. They spoke on condition of anonymity as it related to an ongoing investigation. Vishal Mehta, the CEO of Vaishnavi, the firm owned by Radia, declined to comment.
Investigators probing a telecoms license scandal were also examining a loan of Rs 1600 crore ($350 million) that Unitech received from unlisted Tata Realty and Infrastructure (TRIL).
TRIL told ET that no loan was given to Unitech, but said it did provide the realty company with interest in mobile operations with a "commercial advance".
"Unitech is one of the largest real estate companies in India, and as part of our regular business activities, we enter into transactions with several entities. Commenting on any such transaction is not only prejudicial to our business interest but also results in infringement of confidentiality agreements entered into with such entities," Unitech said in a statement to ET.
"Nevertheless, we would like to clarify that we have not availed any loan of Rs 1600 crore from Tata Realty," it said.
Officials at Tata Realty and Unitech could not immediately be reached by Reuters for comment.
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At 9:36 a.m. (0406 GMT), shares in Unitech were trading down 3.8 percent at 57.70 rupees after having fallen as much as 6.7 percent, while the main Mumbai market was up 0.8 percent.
People familiar with the investigation say a loan was facilitated by Niira Radia, a lobbyist and owner of a firm that handles the public relations work of all Tata companies.
Radia, who had Unitech as a client at the time, was questioned about the transaction in the course of a lengthy interrogation by the Enforcement Directorate on Wednesday.
Radia, who finds herself at the centre of a media frenzy after tapes of her conversation with industrialists, politicians and journalists were leaked, told interrogators that while such an amount was given by TRIL to Unitech in 2007, she wasn’t sure of what the money was meant for, according to people familiar with the probe.
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She also confirmed her involvement in structuring the agreement between the two companies, the people said. They spoke on condition of anonymity as it related to an ongoing investigation. Vishal Mehta, the CEO of Vaishnavi, the firm owned by Radia, declined to comment.
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