Shares of IRB Infra fell sharply in the last hour of trade as news of Central Bureau of Intelligence (CBI) raids hurt investor sentiment. The stock plunged 10.5 percent intraday on Monday.
The CBI has conducted raids and searches at the realty developer's around 20 offices in Pune & Mumbai. The CBI is re-investigating complaint of land grab filed by slain RTI activist Satish Shetty against Virendra Mhaiskar, chairman and managing director of Ideal Road Builders (IRB) Infrastructure Developers. The Bombay high court had permitted the CBI to re-investigate Shetty's complaint saying it was "in the interest of justice".
Shetty was murdered near Talegaon near Pune in 2010. In 2012, the Bombay High Court handed over the murder case to the CBI following a petition by Shetty’s family members.
The company’s involvement with the case was due to IRB’s acquisition of around 1,100 acres of land near the Mumbai-Pune Expressway between 2007 and 2010. The land was acquired for real estate development purposes. Shetty was looking into the possibility of land-grabbing from farmers along the Mumbai-Pune Expressway.
The stock closed at Rs 244.80, down Rs 22.55, or 8.43 percent on the BSE.