Veritas frowns at Indiabulls, co hits back

The Canada based brokerage Veritas has frowned upon the financials and corporate governance at Indiabulls Real Estate and Indiabulls Power.

Veritas said the merger of Indiabulls Infrastructure Development Ltd with Indiabulls Power is not helpful to the company’s shareholders and that the claimed net worth of Indiabulls is unverifiable.

Indiabulls Infrastructure, a subsidiary of Indiabulls Real Estate, was demerged with effect from April 1, 2012, into Indiabulls Power under a Scheme of Arrangement approved by the Delhi High Court on May 24, 2012.

Indiabulls has hit back at the research firm saying the allegations are factually incorrect and ignore the disclosures made by company in its annual reports.

“The company will initiate appropriate criminal proceedings on the authors of the research report for publishing false and factually incorrect data, to create sensation and entice people for benefitting through trading, for the sole purpose of selling their research reports for money,” Indiabulls said in a release.
The Indiabulls group shares after falling nearly 9-17% in the morning, recovered from the day lows to end the day 1-3% down.