An Indian court and the police force are poised to begin separate investigations to examine allegations of fraud and misappropriation against Indiabulls Housing Finance Ltd. and Lakshmi Vilas Bank Ltd., two lenders that have sought approval to combine.
Delhi High Court on Friday agreed to hear a petition that alleges Indiabulls gave loans worth billions of rupees to shell companies. The Delhi Police’s Economic Offences Wing registered a complaint against the board of Lakshmi Vilas Bank alleging cheating and misappropriation. The lenders are awaiting a nod on their merger deal from the country’s central bank, which has stepped up scrutiny of the proposal.