Indiabulls, Reliance, DLF siphoned off public funds to make private wealth: PIL in Delhi High Court: A Public-Interest Litigation (PIL) in the Delhi High Court has accused Indiabulls Housing Finance Limited and its corporate groups like Reliance and DLF of siphoning off vast amounts of public money, a report in the Caravan said today. Filed by Citizen Whistle Blowers Forum, the PIL noted that the IBHFL and its partner conglomerates, including Reliance Anil Dhirubhai Ambani Group and the DLF Group, joined hands to divide a large amount of public money by rerouting it through shell companies. The PIL further asserted that the IBHFL used several methods to create private wealth from public money.
The PIL explained that the IBHFL had taken huge loans from the public and private banks and was involved in approving loans to companies owned by large corporate groups. The PIL revealed that these corporate groups, in turn, used to invest the money in entities owned by the promoters of Indiabulls. It further said that the transactions were carried out by the ICICI Bank and Dewan Housing Finance and alleged that lakhs of crores of public money was looted. The PIL termed the transactions round-tripping and scam.
The companies involved in the alleged scam include a Spain-based non-resident Indian; the Vatika Group, Anil Ambani’s Reliance ADAG; the DLF Group, promoted by Kushalpal Singh; the Americorp Group, and the Chordia Group. The PIL has alleged that the IBHFL had loaned Rs 9,248 crore to these five companies.
From the 9,428 crores, the first lent a loan of Rs 1,580 crore to Reliance ADAG, which invested Rs 570 crore back in Indiabulls. Similarly, DLF received Rs 1,705.54 crore as loans and invested at least Rs 66 crore in a company owned by Sameer Gehlaut, founder and chairman of Indiabulls. The IBHFL also lent a loan of Rs 4,601.01 crore to 51 companies of the Vatika Group, owned by Gautam Bhalla.
In the rebuttal, the Vatika group denied any association with Sameer Gehlaut and said the news is totally false and malicious to harm the reputation of the company. The statement from MD Gautam Bhall said Vatika is a strong company and does not indulge in the transactions which go against the law.