The shares of Indiabulls Real Estate declined by 4.24% on Wednesday and by 8.91% in the past seven days. The National Anti-profiteering Authority (NAA) found the company guilty of not passing on over ₹6.46 crores input tax credit benefits to homebuyers by a commensurate reduction in prices post rollout of GST.
A buyer filed a case against Indiabulls Real Estate, claiming that the company has not passed on ITC benefits in project Sierra-Vizag, situated in Visakhapatnam. The Directorate General of Anti Profiteering (DGAP) investigated the case and found the builder guilty of profiteering.
The Authority found that the real estate firm benefited from additional ITC post the introduction of Goods and Services Tax between July 1, 2017, and March 31, 2019, and ₹ 6,46,06,227 should be passed on to the buyers in the project.
In its order dated June 24, the NAA said, “The amount that has been profiteered by the respondent from the homebuyers in the said project shall be refunded by him, along with interest at the rate of 18 per cent thereon, from the date when the above amount was profiteered by him till the date of such payment.”
The amount has to be passed on to the home buyers within three months.
Ace Investor Rakesh Jhunjhunwala holds a 1.1% stake in the company as per March 2022 data. The filing related to his holdings as of June 2022 is awaited.
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