Veritas, in its Canada suit, has alleged that the conduct of Indiabulls caused 'irreparable damage to their business'. On Thursday, The Economic Times reported that Mangal was arrested by the Gurgaon police on Tuesday and sent to police custody for six days. Punitive damages are typically awarded in addition to actual damages in cases wherein the court is convinced that the behaviour of the named entities was harmful and deserves further monetary punishment in addition to the damages. The Delhi high court, however, has restrained Veritas from proceeding with the suit till the case is next heard in India in February
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Home Archive Frontpage. Mumbai police grill Veritas analyst over Indiabulls Real Estate report. It is not often that an analyst gets slapped with allegations of extortion, defamation and conspiracy. Nitin Mangal, a consultant with the Canada-based research firm Veritas, never thought he would face these charges when he released a strongly-worded report on Indiabulls in August last year.
The co-author of the page report on the Indiabulls Group has already been subjected to more than hours of grilling by the police in Mumbai.
On Monday, the Bombay High Court directed Mangal to be present before the cyber crime investigation cell of the Mumbai Police later this week. While the court told Mangal to cooperate with the investigation, it continued with the interim relief that bars the police from arresting the analyst who has shifted, with his family, to Indore ever since the court battle began.
The cops have sent Mangal a questionnaire with 10 questions and have alleged that he has answered only one. The queries reportedly relate to Veritas and its arrangements with its clients making it difficult for Mangal to respond since he was associated with the Canada-based firm only as a consultant. The police has also seized Mangals laptop and have access to his email records. Interestingly, documents running into thousands of pages have already been submitted to the investigation officer by Neeraj Monga, another analyst, based in Canada.
Indiabulls has already filed an intervention application for becoming a party in the case. While recommending a sell rating, the report said that the disclosures by all the Indiabulls entities are unreliable and that the sole purpose of Indiabulls Real Estate is to bilk institutional and retail investors for the benefit of select insiders.
The controlling shareholders are running the organisation as a piggybank, while proclaiming propriety and espousing credibility. The association of reputed institutions, individuals and organizations with the company is vexing to say the least, it added. Indiabulls was quick to respond, questioning the motive of the report along with some of the facts. The diversified business house also alleged that Veritas named for the Roman goddess of truth released the report to a certain select group of people before it was released in the media and to institutional shareholders.
According to the first information report, Mangal along with Monga and Veritas has been charged under Section punishment for extortion , Section defamation , Section criminal intimidation and Section B criminal conspiracy of the Indian Penal Code, and Sections 66A and 75 of the Information Technology Act.
What went wrong with the Veritas report
The company also said that it had filed complaints with the police in Guragon and Mumbai seeking action. In the report titled 'Bilking India', Veritas advised institutions and individuals to sell all Indiabulls Group stocks saying that corporate governance has been sacrificed to enrich controlling shareholders. Indiabulls had termed the allegations as factually incorrect and as an intentional act of profiteering. But the report caused share prices of Indiabulls Group companies to tank by around 10 per cent on Wednesday before recovering later during the day.
Veritas files suit against Indiabulls claiming $11 million in damages
MUMBAI: Canada's Veritas Investment Research firm, known for its caustic remarks on companies it covers, accused Indiabulls of sacrificing corporate governance practices to enrich key shareholders. The Mumbai-based group has responded aggressively filing a criminal complaint against the independent research firm in Gurgaon, a New Delhi suburb. An Indiabulls spokesman told ET that Gurgaon police have admitted a criminal offence and registered an FIR against Veritas after the company initiated criminal proceedings against the research outfit for publishing "false and factually incorrect data to create sensation and entice people for benefitting through trading for the sole purpose of selling their research reports for money". In a report titled 'Bilking India', Veritas has made three main allegations against the group. Second, privately-held entities of the management did projects for the group's listed entities at inflated prices. Veritas has not minced words in the page report, of which only a three-page synopsis found its way to the media. Monga was the main author of the scathing reports against the other top Indian firms.
Indiabulls: Veritas analyst sought bribe to stop sell report
Veritas Investment Research, a Canada-based equity research firm, has come out with a scathing report on real estate-to-power group IndiaBulls accusing the group's "controlling shareholders" of "bilking" misleading investors for the benefit of a few "insiders". It recommended that investors not buy any of the group's shares "at any price, unless a new management is put in charge and the financials cleansed of malfeasance. It cautioned institutions providing debt funding to IBPOW to check its reported net worth "with a fine toothcomb. IBREL, the report said, does not have the track record of delivering on its promises and was unlikely to fulfill its commitments to institutional and retail investors. Indiabulls Financial Services was down 9. IndiaBulls group hit back at Veritas accusing the research agency of "malafide intentions" and "intentional profiteering. Capital markets watchdog Securities Exchange Board of India SEBI did not comment but an official of the regulator told HT, "We will review the report thoroughly first and only thereafter we can decide if any necessary action needs to be taken.