Indiabulls Ltd's loans totaling Rs 8,267.86 crore have been fully repaid with interest, confirmed by the Delhi EOW. Investigations found no financial loss or fund diversion, clearing the company of key allegations in a PIL.
Indiabulls Ltd Gets Clean Chit on Loan Allegations
All 197 loan accounts totaling Rs 8,267.86 crore have been fully repaid with interest. Reader Takeaway: Company cleared of major allegations; full loan repayment confirmed. ## What just happened The Economic Offences Wing (EOW) of the Delhi Police has submitted a status report to the Supreme Court. This report addresses a Public Interest Litigation (PIL) filed by the Citizens Whistle Blower Forum. The EOW's findings corroborate Indiabulls Ltd's position that lending activities were legitimate and all obligations have been fulfilled. ## Why this matters This report is significant as it confirms that all 197 loan accounts, involving five borrower groups and a total sanctioned amount of Rs 8,267.86 crore, have been fully repaid, including interest. A certificate from chartered accountants M/s N.D. Kapur & Co. verifies this. The EOW's findings, which were also reviewed by SEBI and the National Housing Bank (NHB), indicate no financial loss to the company (formerly Indiabulls Housing Finance Limited). ## The backstory The PIL had raised concerns about potential financial impropriety. However, the EOW report, drawing from SEBI and NHB reviews, concluded that loan disbursements and repayments were properly accounted for, with no evidence of fund diversion. Allegations of quid pro quo investments were refuted, with the report noting investments predated borrowings and lacked evidence of linkage. ## What changes now This development provides regulatory clarity and removes a significant overhang for shareholders. The company has been cleared of key allegations concerning loan diversion and quid pro quo arrangements. Indiabulls Ltd itself is not a party to the PIL, which concerns the former promoter. ## Risks to watch While the company is cleared, the investigation concerning the Reliance ADAG group is ongoing. The Supreme Court will hear the remaining points in the PIL at a future date. ## Governance clarity The filing notes that loans were approved by the company's Credit Committee, comprising executives and chaired by the CEO. Former promoter Mr. Sameer Gehlaut was not part of this committee and had no role in loan approvals. He ceased to be a promoter in 2023. ## Context metrics (time-bound) Total Loans Sanctioned: Rs 8,267.86 crore Gross Collection (Repaid): Rs 11,073.77 crore Total Loan Accounts: 197 ## What to track next Investors will be keen to see the Supreme Court's proceedings on the remaining points of the PIL and any further updates on the Reliance ADAG group investigation.
