India DLF shares tumble amid accusations of undue favours

MUMBAI, Oct 10 (Reuters) - Shares in India's biggestproperty developer DLF Ltd slumped on Wednesday, a dayafter an anti-graft activist alleged that the company receivedundue favours from the government in the northern state ofHaryana.

DLF, valued by investors at about $6.82 billion atWednesday's close, ended down 4.95 percent, after losing 7.3percent since Monday. Investors, worried about the allegations,have dumped the stock, wiping out more than $1 billion of itsmarket value over the last three days.

India Against Corruption (IAC) activist Arvind Kejriwal saidthe Haryana government allotted DLF 30 acres of land marked forpublic use, and it got another 350 acres as a result of abidding process that favoured the developer.

On Friday, Kejriwal, who is setting up an anti-corruptionpolitical party, accused DLF of arranging favourable loans andreal estate transactions for Robert Vadra, a businessman who ismarried 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 onWednesday, DLF said: "DLF has neither sought nor enjoyed anyspecial favours from the government of Haryana and alldevelopments of DLF undertaken over the last four decades arestrictly in compliance with all applicable laws, rules andregulations with an adherence to the highest ethical standards."

(Reporting by Aditi Shah; Editing by Sunil Nair)

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