DLF slumps over 8% on DLF-Vadra probe concerns
Moneylife Digital Team 27 October 2014

Owing to Haryana government’s likelihood to probe into DLF-Robert Vadra land deals, DLF makes its way into the list of top losers in the stock market


With the Haryana government gearing up to investigate land deals in the state, the DLF stock has already slumped 8.38% since the market opened this morning, currently at Rs 110 (at 4.10 PM). The deals were entered into during the regime of the previous Congress led government.

Moneylife has previously written about whether DLF deserves to even be a Nifty stock anymore. Read the story here

With the BJP winning a majority in the recently held state elections, the Times of India quoted senior Cabinet Minister Anil Vij as saying, "We would hold a probe into the acquisition of 70,000 acres during the 10-year regime of Bhupinder Singh Hooda government. We would inquire whether the land was used for the purpose it was acquired. It would be probed if there was any violation in acquisition to benefit any individual.”

The government has, however, not laid down any procedures or formalities for carrying out the exercise yet.

In an order issued on 13 October, SEBI banned DLF, its founder chairman and five other senior officials associated with the company, from assessing the capital market for the next three years. The company challenged this order in the Securities Appellate Tribunal, and sought an interim relief in order to redeem its mutual funds worth Rs 2500 crore and to launch a domestic debt sale to the tune of Rs 5000 crore. The hearing is due on 30 October.

It was penalized for key information disclosure failures at the time of its 2007 market listing and the stock has already been under pressure since then.

Earlier in July, the former Chief Minister of Haryana, Mr Bhupinder Singh Hooda, legalized the controversial land deal between Vadra owned Skylight Hospitality and DLF.

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