June 12, 2019 / 1:40 PM / 2 months ago

Indiabulls Housing Finance drops for third straight day on fraud allegations

MUMBAI, June 12 (Reuters) - Shares in Indiabulls Housing Finance Ltd fell for a third straight session on Wednesday, dropping up to 9.8% even as the mortgage lender asked the Supreme Court for an urgent hearing of a petition that alleged financial misdeeds.

A criminal writ petition filed on Monday in India’s highest court alleged that about 980 billion rupees ($14 billion) had been siphoned out of the company by senior officials using a web of shell companies.

The housing finance company told the court the purpose of the petition was blackmail and extortion and that it was filed to create turbulence in financial markets, it said in a statement on Wednesday.

“The real objective of the petitioner is not to get the application heard as it has no locus standi, merit or facts,” Indiabulls said.

The company also said the petitioner had admitted in court that the petition was defective in nature and that it would approach the court after rectifying it.

Shares in Indiabulls Housing Finance closed down 7.9% at 621.05 rupees after hitting a four-month low. The stock has fallen more than 15% this week, making it one of the biggest losers on the broader Nifty index. (Reporting by Abhirup Roy; editing by David Evans)

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