Shares of Indiabulls companies plunged up to almost 10 percent on the Bombay Stock Exchange (BSE) on Wednesday in response to reports that its offices were raided by the income tax department at its Mumbai and Delhi offices.
Indiabulls Real Estate shares fell 9.92 percent to Rs. 86.20 apiece before recovering losses and were trading at Rs. 89.60, down 6.37 percent. The Indiabulls Housing Finance stock was trading at Rs. 717, a loss of 3.54 percent, at around 3.02 p.m, after having dropped to Rs. 685 during the day.
"During the investigation the tax department found some crucial papers, which provide various lead to trace unaccounted money," the DNA quoted a source as saying. The news was later picked up by other media houses, including news channels.
The raids led by the Directorate of Income Tax, investigation unit Mumbai, were being conducted at the Mumbai and Delhi offices of Indiabulls Housing Finance, Indiabulls Ventures and Indiabulls Real Estate, the daily added.
The BSE has sought an explanation from the companies to the news report. "The Exchange has sought clarification from Indiabulls Housing Finance Ltd with reference to the news in CNBC TV18 'IT officials search Indiabulls offices across the country, IT official search offices of Indiabulls promoters'. The reply is awaited," Indiabulls Housing Finance said in a regulatory filing to the BSE.