India DLF shares tumble amid accusations of undue favours
MUMBAI, Oct 10 (Reuters) - Shares in India's biggest property developer DLF Ltd slumped on Wednesday, a day after an anti-graft activist alleged that the company received undue favours from the government in the northern state of Haryana.
DLF, valued by investors at about $6.82 billion at Wednesday's close, ended down 4.95 percent, after losing 7.3 percent since Monday. Investors, worried about the allegations, have dumped the stock, wiping out more than $1 billion of its market value over the last three days.
India Against Corruption (IAC) activist Arvind Kejriwal said the Haryana government allotted DLF 30 acres of land marked for public use, and it got another 350 acres as a result of a bidding process that favoured the developer.
On Friday, Kejriwal, who is setting up an anti-corruption political party, accused DLF of arranging favourable loans and real estate transactions for Robert Vadra, a businessman who is married to the daughter of the ruling Congress party chief, Sonia Gandhi.
Vadra and DLF have denied the accusations.
In a statement issued to the Bombay Stock Exchange on Wednesday, DLF said: "DLF has neither sought nor enjoyed any special favours from the government of Haryana and all developments of DLF undertaken over the last four decades are strictly in compliance with all applicable laws, rules and regulations with an adherence to the highest ethical standards."
(Reporting by Aditi Shah; Editing by Sunil Nair)
Keywords: INDIA DLF/VADRA