DLF, Indiabulls, Apollo Tyres ends in red on Panama documents
Shares of DLF, Indiabulls group firms and Apollo Tyres declined on Monday on stock exchanges on reports of leaked documents naming their promoters having associations with firms in tax havens, even as they denied any wrongdoing.
Shares of Apollo Tyres fell 1.81% to close at Rs 171.25 apiece on the BSE. In the intra-day trade, the stock plunged by 3.01% to its day’s low of Rs 169.15.
DLF shares dropped by 1.82% to end the trading session at Rs 118.65. During the trade, the stock nosedived 2.91% to touch the day’s low of Rs 117.40.
Indiabulls Housing Finance declined 2.18% to settle at Rs 631.30. Further, Indiabulls Real Estate dived 1.56% to Rs 56.90 and Indiabulls Wholesale Services was down 2.60% to Rs 14.61.
The benchmark BSE Sensex closed 130.01 points or 0.51%, higher at 25,399.65.
The decline in shares came after a newspaper, based on leaked documents of Panama law firm Mossack Fonseca, reported that over 500 Indians including some well known names figure in the list of persons having association with firms in tax havens.
Mossack Fonseca, a law firm headquartered in tax haven Panama, known for its factory-like production of offshore companies for its worldwide clientele of the well-heeled.
Among the 500 Indians, DLF owner KP Singh and nine members of his family, promoters of Apollo Tyres, Indiabulls’ Sameer Gehlaut and Gautam Adani’s elder brother Vinod Adani names were there.
As per RBI norms, no Indian citizen could float an overseas entity before 2003. In 2004, for the first time individuals were allowed to remit funds of up to 25,000 dollar a year under the Liberalised Remittance Scheme, and this limit stands at 250,000 dollar a year now, the newspaper noted.
International Consortium of Investigative Journalists ( ICIJ) however added a disclaimer that there are also “legitimate uses for offshore companies”.
Besides, DLF, Indiabulls and Apollo Tyres denined violating law. Reacting to the report, Indiabulls’ Gehlaut, said all his overseas investments were made after “paying full taxes in India, each and every overseas remittance is disclosed to RBI as and when it has been made”.
DLF CEO Rajeev Talwar said: “This (report) is aimed at distorting public perception which is extremely dear and important to all corporates and promoter families, especially when they have followed all applicable rules and regulations of government of India, RBI, FEMA and IT Department to the last detail.”
A spokesperson of Apollo Group said, “India lawfully permits foreign investments in accordance with certain regulations. Any investment abroad, that the Kanwar family may have, is in due compliance with the Indian laws, where applicable, including making disclosures wherever required. “Much of the family members mentioned are NRIs. They are covered by other nation’s permissible laws for their foreign investments and are not covered by Indian laws and restrictions on residents in matters such as Income Tax and RBI.”