New Delhi: The Supreme Court on Friday agreed to examine a plea filed by the Citizens Whistle Blower Forum seeking an investigation into allegations of illegalities, violations, and siphoning of funds by the former promoters of Indiabulls Housing Finance Limited (IBHFL).
The matter came up before a bench comprising justices Abhay S Oka and AG Masih. IBHFL, now known as Sammaan Capital Ltd, is a mortgage-focused non-banking financial company (NBFC) that is regulated by the RBI.
The bench led by Justice Oka sought a response from IBHFL and other respondents. Besides IBHFL, the Union government, RBI, Serious Fraud Investigation Office, Securities and Exchange Board of India have also been arrayed as respondents in the petition.
The plea has sought a court-monitored special investigation team (SIT) probe into the alleged financial misconduct by IBHFL, its subsidiaries, and their promoters.
During the hearing, the bench refrained from making any observations on the merits in the matter. Senior advocate Abhishek Manu Singhvi represented IBHFL and strongly opposed the petition. The petitioner moved the apex court through advocate Neha Rathi.
The plea said the instant special leave petition has been filed assailing the final judgment and order dated February 2, 2024, passed by the High Court of Delhi rejecting petitioner’s prayer seeking direction for an in-depth, thorough and time-bound investigation by a SIT into various serious illegalities including round-tripping of funds, violations of provisions of Companies Act, and siphoning of funds committed by the promoters of Indiabulls Housing Finance Limited (now renamed as Sammaan Capital Ltd.), its subsidiaries and their promoters
"Based on public records, ROC documents and financial statements of the said company, the petitioner in the instant case had shown how the respondent company had been extending huge loans to various companies and these companies in turn have been routing a substantial part of the money as investment in companies belonging to the keyshareholders/promoters of IBHFL, including Mr. Sameer Gehlaut, the founder and the then Chairman of IBHFL," said the plea.
The plea said the high court failed to appreciate that many of the companies to which IBHFL has extended these loans have a small paid-up capital, do not have any fixed assets and are not even engaged in any business activities.
"The directors and office addresses of many of these companies are also common. A majority of these borrower companies have also failed to file charge with the Ministry of Corporate Affairs (MCA). That merely because the borrowing companies have paid back some of the dubious loans advanced to it, does not imply that the promoters of Indiabulls did not benefit from the same”, said the plea.
Indiabulls has consistently denied the allegations, asserting that its financial practices adhere to regulatory standards set by the RBI, SEBI, and NHB.
