Indiabulls Housing Finance Statement

The total loans on the books of Indiabulls Housing are approx Rs 90,000 crores. The allegation of siphoning off of Rs 98,000 crores is bizarre.

We wish to state that a racket of blackmailers have been trying to extort money from Indiabulls over last 2 months threatening to write complaints to various Govt departments alleging siphoning off of Rs 55,000 crores if Rs 10 crores wasn’t paid to them.  Indiabulls did not succumb to pressures of the blackmailers and instead chose to file a FIR against such people on 4^th June 2019. When the demands of the person who was the original complainant for alleging siphoning off of Rs 55,000 crores through complaint dated 6^th May, 2019 were not met, he thereafter tried to extort money in lieu of withdrawing his complaint from the various Govt departments that alleged siphoning off of Rs 55,000 crores. This person was arrested by Police on 7^th June, 2019 and various incriminating evidences were collected by Police from his premises. As a retaliation to that arrest, the group of people involved in the blackmailing racket floated another complaint on Whatsapp in name of another individual on 8^th June, 2019 addressed to various Govt departments but this time increased the siphoned off figure to Rs 98,000 crores in the complaint. The police proceedings are going on in the case and the court has granted Police custody of individual under arrest for 6 days.

After the Police unearthed the blackmailing and extortion racket, we wrote to various Govt departments on 9^th June and apprised them of the complaints dated 6^thMay 2019 and 8^th June 2019 and the modus operandi of the blackmailing racket. One complainant bought 2 shares of Indiabulls Housing and the second complainant who has filed the writ petition in Supreme Court bought 4 shares of Indiabulls Housing on 9^th May, 2019 to get covered in the garb of shareholder whistleblowers.

We believe that the impending merger application with Laxmi Vilas Bank made us very easy target for the blackmailers who thought we would be easily blackmailed given the sensitive regulatory process we are going through right now.

We understand that Honorable Supreme Court is not a forum for such allegations of wrongdoings against a specific company and the right forum is appropriate regulatory bodies. The cause of action to go to courts arises when the regulatory bodies have not taken any action even after a reasonable period of time. We believe that the filing of Writ Petition on 10^th June, 2019 after circulating a complaint on Whatsapp on 8^th June, 2019 without seeking any remedy from regulatory bodies is an attempt to divert attention from the ongoing Police proceedings and a desperate attempt to malign our reputation by eye catchy news mentioning a “Supreme Court Writ” that has only been filed today by a shareholder who bought 4 shares in the company only a month back.

We employ over 30,000 people across the Group and are one amongst the top 25 tax paying and dividend paying private groups in the country. Our board of directors include eminent people like two ex RBI Deputy Governors, retired justices from the Supreme Court and retired senior bureaucrats. We remain determined to break the back of such blackmailing rackets so that nobody in future can use such tactics against Indiabulls.