Indiabulls’ plea against Bhushan to be examined

NEWDELHI: The Delhi high court on Tuesday asked an NGO, which alleged financial irregularities against Indiabulls Housing Finance Ltd, to respond to the firm’s plea seeking proceedings against advocate Prashant Bhushan for allegedly making false statements against it in a public interest litigation.

A bench of Chief Justice D N Patel and Justice C Hari Shankar issued notice to Citizens Whistle Blower Forum and Bhushan, one of the members of the organisation, seeking their stand on the perjury application and a separate plea by the company for dismissing the PIL with costs.

The court listed the applications for hearing on October 24, after senior advocate Mukul Rohatgi urged the bench for an early date as each day the PIL was pending, the company was suffering financial losses.

Rohatgi told the court that subsequent to the filing of PIL, the company’s share value has dropped from around ~450 to ~ 210 which has not only affected IBHFL but also lakhs of its investors. He also said that if IBHFL was able to show that the NGO and Bhushan made false statements before the court and in their petition, then it should be dismissed with costs.

In its application under section 340 of Criminal Procedure Code (CRPC), the company has sought initiation of prosecution against Bhushan for “having made irresponsible and false statements to his own knowledge”.

IBHFL has claimed that the NGO and Bhushan made allegations against the company without doing necessary research or verifying the facts from statutory authorities.

Rohatgi said that of the five companies IBHFL had loaned money to, four have repaid and the fifth — Vatika — has to pay back ~600 crore out of the ~4,600 crore loaned to it. He said the PIL has “lifted portions” of a petition moved against the company in the Supreme Court that was later withdrawn by the petitioner.

The application has contended that none of the borrowers had invested or loaned funds to IBHFL group chairman Sameer Gehlaut or any of his companies as alleged by the NGO. The PIL has alleged that monies loaned by Indiabulls to various companies were routed back to its promoters through other entities.