W.P.(C) 9887/2019

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*

IN THE HIGH COURT OF DELHI AT NEW DELHI

%

Reserved on: October 4, 2023

Pronounced on: February 02, 2024

+

W.P.(C) 9887/2019 & CM APPL. 40877/2019; CM APPL.

40878/2019; CM APPL. 44283/2019; CM APPL. 44284/2019 & CM

APPL. 396/2022

CITIZENS WHISTLE BLOWER FORUM

...... Petitioner

Through:

Mr. Prashant Bhushan, Ms. Neha

Rathi and Mr. Kamal Kishore Tyagi,

Advocates

Versus

UNION OF INDIA AND ORS.

.....Respondents

Through:

Mr. Anurag Ahluwalia, CGSC for

respondents No.1, 2 & 6

Ms. Shobhana Takiar, Advocate for

respondent No.3

Mr. Ramesh Babu, Ms. Manisha

Singh, Ms. Tanya Choudhary &

Ms. Jagriti Bharti, Advocates for

respondent No.4

Ms. Pinky Anand, Senior Advocate

with Mr. Ashish Aggarwal,

Ms.Saudamini, Mr. Nishchay Kapoor

& Mr. Satyajit Yadav, Advocates for

respondent No.7

Ms. Pallavi Kumar & Mr. Pranav

Tanwar, Advocates for respondent

No.9

CORAM:

HON'BLE MR. JUSTICE SURESH KUMAR KAIT

HON'BLE MS. JUSTICE NEENA BANSAL KRISHNA

Digitally Signed

By:ALKA BOBAL

Signing Date:02.02.2024

17:53

Signature Not Verified

W.P.(C) 9887/2019

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JUDGMENT

SURESH KUMAR KAIT, J

1.

The petitioner-organisation, claims to be a registered organization,

working to provide a platform to whistleblowers across the country and to

take up litigation on their behalf in order to provide them anonymity and to

instill in them the necessary confidence to make disclosures without fear,

arrange for their objective and impartial investigation and help to take such

cases to their logical conclusions in a time bound manner.

2.

The petitioner has filed the instant writ petition under Article 226 of

the Constitution of India seeking direction for an in-depth, thorough and

time bound investigation by a SIT into various serious illegalities, violations

and siphoning of funds committed by the promoters of Indiabulls Housing

Finance Limited (IBHFL), its subsidiaries and their promoters. The

petitioner has further sought directions to the Ministry of Corporate Affairs,

Registrar of Companies (ROC), Serious Fraud Investigation Office (SFIO),

National Housing Bank (NHB), Reserve Bank of India (RBI), Securities and

Exchange Board of India (SEBI) to take action against IBHFL and its

promoters/owners, who through its promoters, subsidiary companies and

various group of companies, has been advancing dubious loans to

companies owned by large corporate groups which in turn have been routing

the money back to the accounts of companies owned by the promoters of

Indiabulls, so as to increase their personal wealth.

3.

The petitioner alleged that the aforesaid activities of respondent No.7-

India Bulls Housing Finance Ltd. and its promoters are in violation of

Digitally Signed

By:ALKA BOBAL

Signing Date:02.02.2024

17:53

Signature Not Verified

W.P.(C) 9887/2019

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various Statutes and Polices relating to Companies Act, 2013, Rules and

Regulations of Reserve Bank of India (RBI), SEBI, National Housing Bank

and other laws.

4.

The petitioner further alleged that the respondent No.7 and the

companies owned by its promoters have been involved in round tripping of

funds in violation of the relevant laws and policy guidelines and they have

also not disclosed sources thereof and their books of account also do not

show the true state of affairs. However, the authorities concerned have failed

to do any investigation into these allegations/reports and take required

action against them, which poses serious risk and threat to the public

interest.

5.

The petitioner has also alleged that the respondent - IBHFL group,

and the group of companies owned by it i.e. India Bulls Real Estate,

Indiabulls Commercial Credit, Indiabulls Ventures, Indiabulls Infra &Power

and scores of other privately held companies, with their ownership divided

between the partners, has a net worth of over Rs.75,838/- crores, as per its

website.