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ED conducts raid at the India Bulls finance Centre in Mumbai and Delhi
ED conducts raid at the India Bulls finance centre in Mumbai and Delhi
Enforcement Directorate officials conducted a raid at the India bulls Housing finance limited (IHFL) centres in Mumbai and Delhi. The raid was initiated based on the complaint registered under the Prevention of money laundering Act, 2002.
The complaint was filed by Ashutosh Kamble, who claims to be one of the India bulls Housing Finance Limited shareholders. He filed an FIR in palghar, Maharashtra in April 2021 and based on the same FIR, ED registered Enforcement Case Information Report (ECIR) and initiated an investigation against the IHFL company.
The allegations against the IHFL are:
- The complaint is registered against the company and its promoters under fraud, forgery and other sections of the prevention of money laundering act,2002.
- The company siphoned the funds and invested in its own shares to increase the value of shares
- The real-estate companies borrowed loans from the IHFL and invested the same on the shares of the company to increase its values.
- The complainant alleged that the company have account irregularities
in general, if a company borrows funds from a bank and other financial organisations and does not use the funds for that purpose for which it was withdrawn instead diverting the funds for their personal motive.
In this case, the ED registered a case against the company because the complainant Ashutosh Kamble alleged that the company is diverting or siphoning funds to increase the value of their shares by investing the siphoned funds in their company shares.
Enforcement Directorate planned the raid on Sunday and two organised teams conducted a raid on Monday to find some important documents and according to the reports ED has found some incriminating documents during the raid.
The company officials stated after the raid said that the FIR filed by the Ashutosh is a frivolous one and contains no truth in the facts or law. And they stated that Ashutosh runs an extortion and blackmail racket against the company.
Company officials stated that “The FIR is a copy and paste of several patently false, vexatious and malicious complaints that the blackmailers have been circulating for the last three years now. A similar allegation petition under the name of Abhay Yadav was dismissed by the Supreme Court in 2019”
The company immediately approached the Bombay divisional court to quash this frivolous complaint against the company. The division bench ordered a stay on all the proceedings which would be initiated by the complaint filed against the company.
Bombay division court stated that “we prima facie are of the opinion that the complaint filed appears to be malafide and deficient” and ordered a stay on the proceeding and investigation arising out of this complaint.
After the completion of the ED Raid, the company gave an official statement that the Enforcement Directorate required some information regarding the clients and the same has been provided to the enforcement directorate. The company officials provided the data of required clients to the enforcement Directorate.
The legal team of the company gave an official statement that the ED has taken action even after the Bombay division court gave an order not to conduct an investigation based on that frivolous complaint. The legal team also communicated with the ED that company promoters are also a party to the case that is pending in Bombay decision court and asked the ED not to take any coercive action against the company until the matter gets disposed of in the court.
The Delhi High court issued an order directing the ED to not to take any coercive action against Indiabulls based on the Enforcement Case Information Report. The raid conducted by the Enforcement Directorate had a huge impact on the shares of the company. Indiabulls housing finance fell 10 per cent in its shares after the raid.
To conclude the raid conducted by the enforcement directorate is an arbitrary investigation as the Bombay decision court held the complaint to be a frivolous one and yet ED initiated the investigation based on that complainant whereas the Delhi high court ordered the ED not to take any coercive action against the Indiabulls Housing Finance Limited (IHFL).
