(Bloomberg) -- Indiabulls Housing Finance Ltd. was set for the biggest drop in more than a week after the Delhi High Court agreed to hear a petition to investigate the financier.
The petition alleged that Indiabulls Housing gave “dubious loans” worth billions of rupees to shell companies through firms owned by the group's founders “to increase their personal wealth.”
The company denies the allegations and Indiabulls Housing's lawyer Mukul Rohatgi said the alleged loans were secured and most of them stand repaid.
Indiabulls Housing's shares fell 4.6% as of 3:06 p.m. in Mumbai, set for the biggest drop since Sept. 19. The main index was trading 0.4% lower.
To contact the reporter on this story: Upmanyu Trivedi in New Delhi at utrivedi2@bloomberg.net
To contact the editors responsible for this story: Arijit Ghosh at aghosh@bloomberg.net, Jeanette Rodrigues, Abhay Singh
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