Mumbai: Shares of RDB Infrastructure and Power fell nearly 3 per cent on Monday after the company disclosed that its Managing Director and Chief Financial Officer had been summoned by the Enforcement Directorate (ED). The stock hit an intra-day low of Rs 48 on the Bombay Stock Exchange (BSE). The summons, issued on November 21 require the Managing Director to appear before the ED and submit documents as part of an ongoing investigation under the Prevention of Money Laundering Act, 2002.
At 12:28 p.m., RDB Infra shares were trading 1.88 per cent lower at Rs 48.47 on the BSE, while the benchmark Sensex was up 0.19 per cent at 85,397.39. The company also confirmed that the ED conducted search and seizure operations on November 20, at the residences of the Managing Director and Chief Financial Officer, as well as the RDB Group office in Gurugram. “We wish to inform that the Managing Director & CFO of the Company has received a summon dated November 21 from the Directorate of Enforcement, Ministry of Finance, Government of India,” the firm said in its regulatory filing.
“The summon requires the attendance of Managing Director, to provide evidence and produce documents in connection with the investigation under the Prevention of Money Laundering Act, 2002,” it added. The searches were linked to the acquisition of land in Sector 70A, Village Palra, Gurgaon. During the operation, the ED seized certain documents and electronic devices. This is not the first time the company has been contacted by the ED regarding this matter.
One of the promoters received a summon on October 14, while the Managing Director was summoned earlier on October 1, both relating to the same land acquisition case. RDB Infrastructure and Power is part of the RDB Group and focuses on residential and commercial real estate projects. The company began by developing homes for middle- and lower-income buyers but has since expanded its portfolio across segments.
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