The company has said in its application that the statements mentioned in the forum's petition alleging irregularities, violations and siphoning of funds are false.
During the hearing, senior advocate Mukul Rohatgi appearing for Indiabulls said: "The petition filed by the forum should be dismissed with heavy cost."
He also said that due to the said petition, the share prices of the company are dropping and even the shareholders are suffering.
In a statement, Indiabulls Housing Finance Ltd (IBHFL) said: "In its application to the Delhi High Court, Indiabulls Housing had submitted along with proofs that the PIL has been filed with distorted and fabricated facts with the sole objective of misleading the court to issue notice on the PIL, create a continuing overhang of the PIL on the company and thereby causing damage and financial loss to Indiabulls for fulfilling ulterior motives."
The application filed by Indiabulls seeks institution of an inquiry under Section 340 of the Code of Criminal Procedure (CrPC) against the forum and record a finding prima facie holding it of being liable to be prosecuted under Section 195 of the CrPC, it said.
The application further seeks action against the petitioner for having committed offences punishable under Sections 193, 196, 199 and 200 of the Indian Penal Code, read with Section 195 of the CrPC.
On Friday, the forum had filed a PIL at the Delhi High Court alleging IBHFL of indulging in financial engineering and advancing dubious loans to companies, which routed the money back to the accounts of the companies owned by Indiabulls promoters, following which court issued a notice to the company, the Ministry of Corporate Affairs, the Reserve Bank of India and the Securities and Exchange Board of India.
"IBHFL, through its promoters and their various group companies and subsidiary companies, has been advancing dubious loans to companies owned by large corporate groups which in turn have been routing the money back to the accounts of companies owned by the promoters of Indiabulls, so as to increase their personal wealth," the PIL said.
( With inputs from IANS )