Why Did RDB Infra Shares Drop Nearly 3% After ED Summons?
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Synopsis
RDB Infra's share price fell sharply by nearly 3% after the company's top executives were summoned by the Enforcement Directorate in a money laundering investigation. This significant event not only impacted the stock market but raised concerns regarding the company's future amidst ongoing probes.
Key Takeaways
- RDB Infrastructure and Power shares fell nearly 3% following ED summons.
- The Managing Director and CFO were summoned for an investigation under the Prevention of Money Laundering Act.
- Operations were conducted on November 20, leading to the seizure of documents.
- This incident raises questions about the company's governance.
- RDB Infra is part of the RDB Group and specializes in real estate.
Mumbai, Nov 24 (NationPress) The shares of RDB Infrastructure and Power experienced a decline of nearly 3 percent on Monday following the company's announcement that its Managing Director and Chief Financial Officer had received summons from the Enforcement Directorate (ED).
The stock reached an intra-day low of Rs 48 on the Bombay Stock Exchange (BSE).
The summons, dated November 21, mandates the Managing Director to appear before the ED and provide documents related to an ongoing investigation under the Prevention of Money Laundering Act, 2002.
As of 12:28 p.m., shares of RDB Infra were trading at Rs 48.47, reflecting a 1.88 percent decrease, while the benchmark Sensex was up by 0.19 percent at 85,397.39.
The company confirmed that the ED had conducted search and seizure operations on November 20 at the residences of the Managing Director and CFO, as well as the RDB Group office in Gurugram.
In its regulatory filing, the firm stated, “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 summon requires the attendance of the Managing Director to provide evidence and produce documents in connection with the investigation under the Prevention of Money Laundering Act, 2002,” it continued.
The searches are connected to the acquisition of land in Sector 70A, Village Palra, Gurgaon. During this operation, the ED seized various documents and electronic devices.
This is not the first time the company has been contacted by the ED regarding this issue.
One of the promoters received a summon on October 14, while the Managing Director was summoned earlier on October 1, both related to the same land acquisition case.
RDB Infrastructure and Power is part of the RDB Group and specializes in residential and commercial real estate projects.
The company initially focused on developing homes for middle- and lower-income buyers but has since diversified its portfolio across various segments.
Point of View
It is essential to remain objective while reporting on significant developments like the ED summons to RDB Infra executives. The situation raises crucial questions regarding corporate governance and accountability. We stand by our commitment to delivering accurate information to our audience.
NationPress
24/11/2025
Frequently Asked Questions
What triggered the drop in RDB Infra's shares?
The drop was triggered by the Enforcement Directorate summoning the company's Managing Director and CFO as part of a money laundering investigation.
What is the current share price of RDB Infra?
As of the latest update, RDB Infra shares were trading at Rs 48.47, reflecting a decline of 1.88%.
When did the ED conduct the search operations?
The ED conducted search and seizure operations on November 20 at the residences of key executives and the RDB Group office.
Is this the first time RDB Infra has faced scrutiny from the ED?
No, this is not the first instance; previous summons were issued in October regarding the same land acquisition case.
What does RDB Infra focus on?
RDB Infra focuses on residential and commercial real estate projects, initially catering to middle- and lower-income buyers.
