Probe finds no financial irregularities in Indiabulls Group

A government investigation hasn’t found any significant financial irregularities in the operations of the Indiabulls group, according to people familiar with the matter. The companies’ shares and bonds jumped. The registrar of companies in its third inspection report has said all transactions between various units of the group have been at arms’ length, the people said, asking not to be identified as the report isn’t public. It also found that loans it had been probing — to DLF, Americorp, and Anil Ambani’s Reliance Group — have all been repaid while those given to the Vatika and Chordia groups are standard accounts. India’s ministry of corporate affairs had been investigating the Indiabulls group for more than a year after initial inquiries found crossholdings between the firms and common address for several of their subsidiaries, raising the possibility of the existence of shell companies. The Delhi High Court on February 28 will hear a petition to probe Indiabulls on similar allegations.