Meanwhile, the BSE Sensex was down 251.84 points, or 1.36%, to 18,234.61.

On BSE, 84,000 shares were traded in the counter as against an average daily volume of 2.52 lakh shares in the past one quarter.

The company informed the stock exchanges about Balwa's resignation before trading hours today, 7 March 2011, following which the company stocks took a beating in early trade today. The stock slumped as much as 15% to hit a record low of Rs 100 in early trade today. But, bargain hunting helped the stock recover as the session advanced.

The stock hit a high of Rs 117.65 so far during the day. The stock had hit a 52-week high of Rs 540.10 on 31 March 2010.

D B Realty stated that its board of directors had accepted Balwa's resignation with effect from 9 February 2011. Chandan Bhattacharya, a director of the company, had also resigned with effect from 18 February 2011, the release said.

The communique stated that DB Realty's business continues in the normal course under new managing director Vinod K. Goenka.

Balwa was arrested last month after his firm was accused of being a beneficiary of the 2G scam. Central Bureau of Investigation (CBI) reportedly had evidence that former telecom minister A. Raja gave Balwa an undervalued spectrum deal.

A Delhi court had earlier denied bail to Balwa stating he could tamper with evidence and influence witnesses if let out.