Indiabulls Real Estate jumps 15% on issuing clarification on ED raids in group cos

Shares of Indiabulls Real Estate surged 15 percent on Tuesday after the company issued a clarification regarding the Enforcement Directorate's investigation in the group companies.

"In the matter of certain media news regarding Enforcement Directorate (ED) investigation, we wish to clarify that ED has sought some information from Indiabulls Housing Finance Limited (IHFL) regarding certain of their clients and it is understood that the necessary data has been provided to ED by IHFL and its officials. The said ED investigation did not pertain to Indiabulls Real Estate Limited and has no bearing on the business and operations of the Company," it said in a BSE filing.

The stock surged as much as 15.1 percent to its day's high of ₹118.60 per share on the Sensex, as against a 1.5 percent decline in the benchmark index.

Meanwhile, Indiabulls Housing Finance also advanced over 4 percent post the clarification posted by its sister company.

However, in the early morning deals, Indiabulls housing Finance stock fell nearly 8 percent on reports of ED raids in the company offices, before the clarification was issued.

The ED, on February 21, searched the offices of Indiabulls Housing Finance and Indiabulls Finance Centre in Mumbai.

The searches were conducted on an Enforcement Case Information Report (ECIR) filed by the agency under the Prevention of Money Laundering Act, 2002 (PMLA) against Indiabulls Housing, its promoter Sameer Gehlaut, and a number of other linked companies and individuals, media reports stated.

Indiabulls Housing Finance on February 21 informed the bourses that the ED sought some information regarding certain clients and the matter originated from an ECIR filed by the agency on the basis of an FIR lodged in Wada village, Maharashtra in April 2021. The company and its officials provided the data of clients to Enforcement Directorate.

The filing added that the ECIR registered by ED stems out of an FIR filed by one Ashutosh Kamble who is part of the long-running extortion and blackmail racket against the company. "The FIR is a copy-and-paste of earlier several patently false, vexatious and malicious complaints that the blackmailers have been circulating for last 3 years now, a similar allegations petition under name of Abhay Yadav was dismissed by Hon'able Supreme Court in 2019," it said.