Indiabulls Real Estate Ltd witnessed a notable decline of more than 10% in its shares today, attributed to a recent vacation order issued by the Maharashtra Industrial Development Corporation (MIDC).
As of 1 pm, the shares of Indiabulls Real Estate were trading down by 10.2 percent at Rs 105.75 each on the Bombay Stock Exchange (BSE).
This downturn follows the MIDC's directive mandating a subsidiary of the company, Indiabulls Industrial Infrastructure Limited, to vacate land located in Sinnar, Maharashtra.
Indiabulls Real Estate intends to contest the order through legal channels, denouncing it as "unlawful."
In an official statement submitted to the exchange, Indiabulls Real Estate stated, "The Company believes this order to be unlawful and is evaluating legal options to defend itself/seek redressal against the said unlawful order, including the filing of an appeal before appropriate authorities or court(s), and shall take all desirable actions in the matter."
Despite encountering this setback, the company's stock has demonstrated resilience, retaining a year-to-date gain of over 20% in 2024.
The genesis of this development traces back to August 2023 when the company initially responded to show-cause notices from the MIDC. Unfortunately, the matter remained unresolved, culminating in the recent vacation order.
Indiabulls Real Estate is currently exploring various legal avenues, including the possibility of lodging an appeal against the MIDC's decision.
The company had previously presented a revival plan to the MIDC, anticipating a favorable outcome. However, the issuance of the vacation order came as an unexpected turn of events.
"While planning and executing further development endeavors on the land at the Special Economic Zone (SEZ) and after submitting a preliminary revival proposal, on a without-prejudice basis, to the MIDC, and while anticipating a favorable decision from the hearing, the MIDC has issued the vacation order," explained the company.
The directive instructs both the Company and its subsidiary, Indiabulls Industrial Infrastructure Limited, to vacate the land measuring 512.068 hectares within the processing zone of the SEZ in Sinnar, Nashik district, Maharashtra, within one month of receiving the order.
