Shares of DLF Ltd., India's top listed property developer, extended losses to a seventh session on Wednesday. The decline has been sharper after the Supreme Court ordered a probe by the Central Bureau of Investigation into alleged irregularities around the development of the DLF Primus residential project at Gurgaon's Sector 82A.
In a Feb. 25 order, earlier this week, it cited a "huge mismatch" between legal requirements and ground realities, including representations made to prospective buyers that may not have been fully translated into reality, Indian Express reported.
The bench of Justices Ahsanuddin Amanullah and R Mahadevan, hearing a batch of appeals filed by nine homebuyers arising out of a national consumer forum order, also expressed concern over the role of regulatory authorities meant to safeguard ordinary consumers while clarifying that no definitive opinion was expressed against any person or authority.
The court warned that the case may be the "tip of the iceberg" and not a one-off incident, adding that in the organised real estate sector, such instances occur, raising concerns about the plight of ordinary consumers.
CBI Director Praveen Sood appeared before the Supreme Court and agreed to conduct inquiry as directed by the apex court. The agency will meet stakeholders, collect evidence and submit a status report by April 25. The CBI team will function independently under Supreme Court oversight.
Stock exchanges have sought clarification from DLF with reference to the news report regarding the case. The company is yet to submit a response as of the publication time.
DLF Share Price Movement
Shares of DLF fell as much as 4.7% intraday to Rs 562.75, compared to a 1.3% decline in the benchmark Nifty 50. On Monday, the stock declined by a similar measure. The stock has fallen 11% in the last 12 months.
Out of the 25 analysts tracking DLF, 24 have a 'buy' rating on the stock and one recommends a 'hold', according to Bloomberg data. The average of 12-month analyst price targets is Rs 881, which implies a potential upside of 55%.
ALSO READ: L&T Shares Tumble 7% Amid Middle East Conflict — Is This The Right Time To Buy?
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
