Mini Pushkarna JUDGMENT
Mini Pushkarna, J.
1. The present petition has been filed seeking directions against the respondent no. 1/National Housing Bank ("NHB") to consider and decide upon the petitioner's representation dated 18th August, 2023, with further prayer for direction to respondent no. 1 to call upon respondent no. 2, i.e., India Bulls Housing Finance Limited ("IBHFL") to produce the responses and relevant documents, disclosing the actions taken by them in respect of the query dated 6th April, 2023 addressed by the petitioner.
2. Facts on record show that the petitioner is a minority shareholder in India Bulls Real Estate Limited ("IBREL"). The petitioner came across certain informations from public documents in relation to IBREL and Embassy Group of companies. While examining the scheme of amalgamation between the Embassy Group and IBREL, the petitioner found material information of the fraudulent sanction and disbursement of loans by IBHFL to Embassy Group. Thus, the petitioner submitted a representation dated 18th August, 2023 to NHB and highlighted various irregularities committed by IBHFL with regard to fraudulent sanction and disbursement of loans by IBHFL to Embassy Group by creation of unauthorised charges on land belonging to Karnataka Industrial Area Development Board ("KIADB"). Since the NHB did not consider the petitioner's representation/complaint, the present writ petition has been filed.
3. Learned Senior Counsel for the petitioner submits that the proceedings were filed in Karnataka High Court at Bangalore, in which the fraudulent actions by IBHFL was brought out in public.
4. It is submitted that IBHFL released a huge amount of ` 1,318/-Crores (Rupees One Thousand Three Hundred and Eighteen Crores) to Embassy Group of Companies by creating charges on a property not belonging to any of the Embassy Group of Companies and without the knowledge and requisite consent of KIADB. Such sanction, disbursement and deployment of funds by IBHFL to Embassy Group of companies, raises serious concerns, which require to be closely scrutinized by the NHB. The amounts were disbursed to Embassy Group of companies by creating charges on land owned by a statutory authority in a fraudulent manner.
5. Thus, it is prayed that directions be issued to the NHB to consider and decide upon the petitioner's representation.
6. Having heard learned Senior Counsel for the petitioner and having perused the record, at the outset, it would be useful to refer to the representation dated 18th August, 2023 submitted by the petitioner, relevant portions of which are extracted as below:
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2. I am a minority shareholder of Indiabulls Real Estate Ltd. (IBREL) and while examining the scheme of amalgamation between Embassy group and IBREL, I found material information of the fraudulent sanction and disbursement of loans by Indiabulls Housing Finance Limited (IBHFL) to Embassy Group. I had made detailed representations to SEBI seeking disclosures and also move an application for impleadment before the Hon'ble NCLT, Chandigarh in C.P. (CAA) No. 14/Chd./Hry/2022. SEBI Vide its Order dated 15th December 2021, observed that "separate disclosures were not made in respect of the assets & liabilities of the entities (including Embassy One Developers Pvt. Ltd (EODPL), Embassy East Business Park Pvt Ltd. (earlier known as Concord India Pvt. Ltd) (EEBPPL/Concord) and Summit Developments Pvt. Ltd (SDPL) whose shareholding was transferred to NAM as part of internal restructuring. In this regard, BSE has been advised to intervene in NCLT, Chandigarh with the observation that disclosures may be made of the assets & liabilities of the entities..."
The Order passed by SEBI dated 15.12.2022 is enclosed for reference as Annexure C.
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7. It is pertinent to state that the ........