Bombay HC quashes case against Indiabulls, promoters

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In a major setback to the Enforcement Directorate (ED), the Bombay High Court on Wednesday quashed a magisterial court order and an FIR lodged against Indiabulls Housing Finance Limited (IHFL) and its promoters on the basis of which ED was probing a case under the Prevention of Money Laundering Act (PMLA).

Earlier in February, the ED had conducted raids in Delhi and Mumbai at the premises of Indiabulls and its promoters. The ED had also written to the National Stock Exchange (NSE) in this connection.

Indiabulls had approached the Delhi High court, but no relief was granted to the firm. It then moved the Bombay High Court seeking quashing of the case and one magisterial court order passed against the firm.

The Bombay High Court after hearing a lengthy argument allowed both the prayers.

“The replies filed before the Delhi High Court at the instance of the RBI and the Ministry of Corporate Affairs also did not make any positive statement so as to hold that the petitioner company had played some mischief causing financial loss to this shareholder,” the Bombay High Court noted in its order while allowing the plea of Indiabulls.

With this, the ED case will also come to a close because it was based on an FIR which has been quashed now.

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