Indiabulls has never taken a single penny from NHB; Allegations are Baseless & Absurd: Ajit Mittal, ED, Indiabulls

The allegations about embezzlement of more than Rs 1 lakh crores from National Housing Bank (NHB) by Indiabulls is baseless and absurd, as this is part of a larger conspiracy, says Ajit Mittal, Executive Director, Indiabulls. During a chat with Dimpy Kalra, Zee Business, Mittal said, “the company hasn’t taken a single penny from NHB till date and you can quote me on this”. Edited Excerpts: 

Q: Can you give a clarification on Dr Subramanian Swamy’s allegations that Indiabulls Finance is indulged in a scandal with the NHB? 
A: The allegations are baseless and absurd and clarifying the subject feels below the dignity to me. Allegations say that the company has embezzled Rs1 lakh crores of NHB and this proves the nature of the allegation because we, Indiabulls Housing, hasn’t taken a single penny from NHB and you can quote me on that. This is a part of a well-planned conspiracy that is present since the past two months, and this is a new development/episode to the same play, and I can just say that the allegations are untrue. We completely oppose them. I don’t have words to say anything about it and that’s why I can’t make any comment on it.

Q: You have said that you have not traded with the NHB. Is this true?
A: It is verifiable and is in the public domain. I am just surprised to see that such an allegation is being made by someone who is a Parliamentarian. The conspiracy is hollow, and I cannot even understand the kind of damage it will cause to us. Everyone is aware of the conspiracy that is in play at present, and why this is happening. The market is smart enough to understand everything and the damage that happens will continue to persist. 

Q: You want to amalgamate with Laxmi Vilas Bank, but why hurdles are being created in the process? Why such statements have an impact on your share prices even after clarification has been issued on the matter? 
A: It is a regulatory process and I will not be able to comment anything on that. It needs to be clearly understood that this is a voluntary amalgamation and there is nothing like taking over one another. It is beneficial for both, the financial sector as well as the banking sector. Laxmi Vilas Bank needs capital and is passing through problems. The good aspect of this amalgamation is that we are getting a long-term franchise of retail liabilities or else, our business is functioning smoothly. The allegations that say that we want to take/acquire are completely baseless and untrue. 

Q: Questions related to the company’s corporate governance and loan book are being raised. Why don’t you appoint a separate auditor to clean your book, i.e. this is our book, and this is the money that we have?
A: Everything is available in the public domain and time and again we have declared it to the exchanges, the media and everybody and there is nothing new in it. The management will take steps that seem right to it. 

Q: How is the company's business performing? Are you in the condition of distributing loans, and is good business on your way? 
A: It is a different question. Complete NBFC sector and housing finance sector has faced some issue since this liquidity crisis came into light some 7-8 months ago. So, it had an impact on almost everyone in these two sectors even we didn’t remain untouched by the crisis, but our business is good, loans are getting sold out well and our pace of distributing the loans has increased. The business model has been re-engineered and the sell-down of the retail loans is happening well. We are focused on consolidation, collection, recovery and the management is dealing with it in the right manner. 

Q: Update us on a loan that fears you or it hasn’t been provisioned yet. 
A: We have been provisioned.