Realty firm Sobha Ltd shares tanked nearly 8 percent on Wednesday, October 4, after a Bengaluru court allowed criminal proceedings against the developer for alleged forgery in a residential project.

Share Market Live

NSE

Falling for the second straight session, the stock dived 7.79 percent to touch a low of Rs 642.70 per piece on the BSE as trading volume surged by more than 2 times on the bourse.

Around 16 lakh shares changed hands on the NSE where the stock fell to a low of Rs 642.10 apiece in day trading.

Sobha Ltd shares had closed more than 1 percent down on Tuesday following an adverse order by Karnataka RERA.

In a fresh blow to the developer, the Bengaluru court observed that all shreds of evidence point that there were prima facie materials to start criminal proceedings against Sobha Ltd for mortgaging a project Sobha City in north Bengaluru, according to a Moneycontrol report.

On a plea of a homebuyer, who bought a flat in Sobha City project in north Bengaluru in 2017, the court observed that Sobha Ltd increased the number of units by 450 without taking the consent of the homebuyers.

The developer obtained an amended project development plan and building plan by producing forged no objection certificates issued by Karnataka State Fire and Emergency Services in May 2013.

In a separate matter, Karnataka RERA has also directed Sobha Ltd to refund the entire purchase amount of a flat along with 9 percent interest to a homebuyer in the Sobha Valley View project in south Bengaluru.

Even as the flat was delivered on time by the developer, the homebuyer claimed that the apartment was not handed over under the agreement as the project land was attached by the Income Tax Department under the Prohibition of Benami Property Transactions Act.

"We are not in receipt of a copy of any complaint / notice from any court on the referred matter hence we can’t offer any detailed comment," Sobha said.

"Regarding construction of additional units, we wish to clarify that since the RERA was not in existence at the time of said constructions, the question of taking homebuyers approvals does not arise. The said construction was in line with the revised sanction plan approved by all the concerned authorities," the company said.

"Further, we wish to clarify that the Deed of declaration is a broad description of a property like carpet area, number of flats and amenities, formation of association etc related to the property developed and nothing to do with the transfer of property title. The fire NOC issue has been resolved already in line with all regulations and requirements as per law," it said.

Sobha Ltd shares were trading 5.24 percent lower at Rs 660.55 apiece on the BSE at 2.37 pm.

First Published:Oct 4, 2023 3:22 PM IST