Shares of Sammaan Capital (formerly Indiabulls Housing Finance) fell 1% in Thursday’s session after the Supreme Court of India intensified its probe into alleged irregular loans disbursed by the company.
In the latest hearing, the apex court directed the Union government to produce original records from the Ministry of Corporate Affairs (MCA) concerning the condonation of irregularities flagged earlier by the Securities and Exchange Board of India (SEBI). The bench, led by Justice Surya Kant, observed that several SEBI-reported discrepancies were either closed or compounded by the MCA, prompting the court to question whether the same leniency was applied in other similar cases.
The court further instructed the Enforcement Directorate (ED) to clarify whether it intends to probe the money laundering allegations linked to Indiabulls Housing Finance’s lending activities. This follows a CBI affidavit filed in July, which stated that no criminal activity had been found warranting an investigation into IHFL’s transactions with banks.
However, Additional Solicitor General S.V. Raju, representing the ED, maintained that “there is something serious in this matter,” noting that the Economic Offences Wing (EOW) had declined to register a case despite receiving information from the ED. The bench has now asked the agency to explain its next steps in the ongoing case.
The Supreme Court has scheduled the matter for further hearing on November 19, keeping the spotlight firmly on the company and its lending practices.
At the time of writing, Sammaan Capital shares were trading down 1%, as investors reacted cautiously to the deepening judicial scrutiny.
