- 08 Dec 2022
- ICICIdirect Research
SOBHA GETS PROVISIONAL ATTACHMENT ORDER FROM ENFORCEMENT DIRECTORATE
SOBHA - 1592 Change: -57.70 (-3.50 %)News:
Sobha has informed exchanges that it has received provisional attachment order issued by Enforcement Directorate subsequent to an inquiry conducted (in 2019) by the authority regarding allotment of certain plots being developed pursuant to a joint development arrangement with certain landowners/licensees in Gurugram, in 2008. According to the order, the authority has provisionally attached certain lands in Kerala valued at Rs 201.6 crore
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We highlight that Sobha had no plans to develop the mentioned lands. Hence, the said provisional attachment has no short or medium-term impact on the operations. The company has said there has been no wrongdoing from its side and is confident of obtaining a favourable outcome through appropriate legal recourse. However, we believe there will be an overhang on the stock unless its name is cleared from the case after legal recourse
Impact:
Negative