Housing Development & Infrastructure Ltd (HDIL) has dismissed the allegations made against it with regard to irregularities in the Slum Rehabilitation Authority project in Bandra in Mumbai as a "frivolous attempt to malign" the company.

The company also said that it was taking recourse to legal remedy including quashing of the FIR registered (against government and company officials).

It was reported that an FIR was registered by the Anti Corruption Bureau complying with a court order against some Maharashtra Government officials and the HDIL group chairman and officials of HDIL over reported irregularities in the Slum Rehabilitation Authority (SRA) project in Bandra area in Mumbai during 2005-06.

The FIR was registered against the Principal Secretary (Housing) Debashish Chakrabarty, Principal Secretary (Woman and Child Development) Ujjwal Uke, HDIL Group Chairman and the company’s 10 directors, according to media reports.

Responding to queries from the BSE with regard to the news reports about registration of FIR against government and HDIL officials, including HDIL Chairman Rakesh Kumar Wadhwan, HDIL said the company has "no role to play" and the "eligibility under the scheme is decided by the concerned statutory authority".

HDIL said that this was a "frivolous attempt to malign the reputation of the company and its directors" and it would initiate "appropriate legal action including quashing of the FIR".

Shares of HDIL were trading at Rs 79.70, down by Rs 1.45 on the BSE. The stock, which opened at Rs 81, dipped to a low of Rs 77.10 but recovered to current levels on the exchange.