UNITECH Ltd Managing Director Sanjay Chandra has blamed "criminal" speculators for the record 50 percent one-day plunge in the stock as the India's second-largest real estate developer hasn't defaulted on loans.

Unitech is filing complaints with the Securities and Exchange Board of India to restrain "bear cartels" that spread "malicious rumors" to drive down the share price, Chandra said yesterday.

Investors are shunning Indian property stocks, leading to a 86 percent drop in the Bombay Stock Exchange's Realty Index this year, on concern the global credit crunch, faltering economic growth and rise in borrowing costs that may curb sales and profits, Bloomberg News reported.

Chandra said he aimed to reverse a sell-off that saw Unitech plunge on Friday on speculation that it was facing a shortage of funds.

"The clarification may stop the panic selling, but most investors may want to wait before they start investing" again, said RK Gupta of Taurus Asset Management Co in New Delhi. "The global economic situation is the main reason why the realty stocks have been battered in India, and that's not going to change in a hurry."

Borrowing costs were currently about 15.5 percent to 16.5 percent, compared with 12.1 percent for the year ending on March 31, Chandra said.

He declined to comment on Unitech's cash position before the company, the second-worst performer on the Realty index this year, reports second-quarter results on Friday. Investors' concern about the developer's funding was exacerbated when India's central bank said it would continue fighting inflation, reducing the likelihood that it would ease borrowing costs.