Indiabulls to sue Veritas over negative report

Indiabulls Finance has threatened to take Canada-based research firm Veritas to court over a report saying that Indiabulls is poorly managed and its sole purpose is to benefit select shareholders.

Calling the report ''factually incorrect'', Indiabulls said in a statement that the report has ignored disclosures made in the public domain. "We will initiate criminal proceedings against the authors of the report for publishing false and factually incorrect data for the sole purpose of selling their research reports for money,'' it said.

The company said such "intentional errors" result into loss for shareholder.

Shares of four Indiabulls firms today plunged sharply after the Veritas report alleged serious irregularities in the group and ''intentional profiteering''.

Shares of Indiabulls Real Estate fell over 12 per cent, Indiabulls Financial Services 11 per cent, Indiabulls Power 11.8 per cent and Indiabulls Securities by about five per cent.

Veritas did not reply to queries on whether the research firm had contacted Indiabulls before publishing its latest report.

Veritas in its report by researcher Neeraj Monga said that public disclosures made by IndiaBulls Real Estate and IndiaBulls Power are unreliable and that the sole purpose of Indiabulls Real Estate ''is to bulk institutional and retail investors for the benefit of select insiders''.