Shares of real estate giant DLF dropped down by 19.4 percent on August 22 as it hit its 31-month low after gaining a notice from the Supreme Court for non-disclosure of key information in Qualified institutional placement (QIP).
The stock fell 23 percent in three straight sessions to Rs 138.30, the lowest level since January 31, 2017. It was quoting at Rs 144, down Rs 27.60, or 16.08 percent on the BSE at 0952 hours.
Petitioner KK Sinha, on whose complain SEBI had earlier barred DLF promoters from markets and imposed a penalty, told SC that DLF failed to mention key cases regarding the violation of the Haryana Land Ceiling Act, 1972, where adverse orders were passed by the Punjab and Haryana High Court, and the matter is pending with the SC, it was reported.
The report said the court had ordered directed investigation into DLF group companies and its admitted subsidiaries for violation of land ceiling laws and other laws, matters concerning benami purchases, licensing, stamp duty payment and transfer pricing issues.
But Ashok Tyagi, Wholetime Director of DLF said in an interview to CNBC-TV18, “All material disclosures had been made in the QIP and complaint is about 5-6 acres of land by a co which is not company’s arm.”.
He further said, “DLF has received the notice from Supreme Court a month ago and SC notice does not ask us for any disclosures. SC has asked DLF & SEBI whether the complainant should be impleaded in the case.”
The report said if there is an adverse decision by the apex court then it could impact DLF investors as petition prays that the company be asked to return more than Rs 5,000 crore that it raised via two qualified institutional placements (QIPs), one of which was in 2019.
In addition, DLF patriarch K P Singh has stepped down as whole-time director but will continue to be its non-executive Chairman, the realty firm said on August 19.