No facts in the PIL, only sensationalisation, says Indiabulls Housing

Indiabulls Housing on Monday, denying the allegations levelled in the public interest litigation (PIL) filed in the Delhi High Court against it, said that there were no facts in the application and that it was merely an attempt to sensationalising the matter.

Delhi High Court has accepted the PIL filed against Indiabulls Housing, which alleges round-tripping of funds by IHFL.

“We feel that the way in which these allegations have been made is more an attempt to sensationalise rather than go into the facts of the matter," said Gagan Banga, VC and MD of Indiabulls Housing Finance.

The company has filed a perjury petition against the applicants including Prashant Bhushan. "We are very clear about our facts and we feel that once and for all, this is an opportunity, which will allow us to settle these allegations, which keep coming up repeatedly especially since June,” said Banga, in an interview with CNBC-TV18.

“The PIL was filed earlier in September. The HC had two sessions subsequent to which it has merely admitted the PIL. It has essentially repeated the same allegations, which were filed in a similar petition in front of the Supreme Court (SC), which were subsequently withdrawn. These allegations have been doing the rounds since June,” Banga clarified.

In terms of prompt corrective action (PCA) processed by the Reserve Bank of India (RBI) against Lakshmi Vilas Bank (LVB) due to the high level of bad loans on its books, Banga said, “I would not read too much into the PCA, unfortunately, the market is. My sense is that this just gives the RBI a time. It has put restrictions on what the bank can do and what it cannot do. So it does not become an ever-increasing problem. It gives the RBI time to evaluate our proposal and then come back in due course of time after doing the due diligence, which is anyways going on."