New Delhi: It was an individual complainant, seeking action against Rs 34 crore he was allegedly duped, and "sham transactions" involving three 'housewives' that has led to regulator Sebi coming hard on the country's biggest real estate developer DLF and its top executives.
The case, in which Sebi has imposed a three-year ban, relates to non-disclosure of these transactions and the related risks when DLF raised Rs 9,187.5 crore through an IPO, the largest in the country at that time.
The company has denied having violated any laws and has said it would defend itself against all adverse findings in the order.
With regard to this IPO, one Delhi-based businessman Kimsuk Krishna Sinha filed two complaints with Sebi on June 4, 2007 and July 19, 2007, Sebi said in its 43-page order while detailing the events and developments related to the matter.
In his first complaint, Sinha stated that Sudipti Estates Private Limited and certain other persons had duped him of Rs 34 crore in relation to a transaction between them for purchase of land, and he had also registered an FIR against Sudipti, one Praveen Kumar and others in that regard.
He also stated that Sudipti had only two shareholders, namely, DLF Home Developers Ltd (DHDL) and DLF Estate Developers Ltd (DEDL), both the wholly-owned subsidiaries of DLF. Sinha further alleged that Sudipti, DHDL and DEDL were sister concerns and are inextricably linked and these companies are a part of the DLF group.
In his second complaint, Sinha said that DLF was denying its or its subsidiaries' connection with Sudipti at that point of time. He, however, claimed that DLF's claim of not having any association with Sudipti was false.
When asked by Sebi, DLF denied the allegations. Not being satisfied with the response provided by DLF, Sinha filed a Writ Petition before Delhi High Court, which asked Sebi to probe the matter in April 2010.
After looking into further appeals by Sudipti and DLF, the High Court passed another order in July, 2011 directing Sebi to examine the matter. Subsequently, Sebi ordered a probe into the allegations made by Sinha in his two complaints of 2007.
After the probe, Sebi issued show cause notices in June 2013 to DLF, Chairman and main promoter KP Singh, his son Rajiv Singh, daughter Pia Singh, as also three others including Managing Director TC Goyal, then CFO Ramesh Sanka, then Executive Director (Legal) Kameshwar Swarup and then non-executive Director GS Talwar.
Except Talwar, whom Sebi has given "benefit of doubt", Sebi has now passed orders against all six individuals as also against the company.
In its notice, Sebi observed that all these individuals were "part of the top management of DLF during the years 2006-07 and 2007-08".
Besides, Praveen Kumar, who was named in Sinha's complaint, was nephew of K P Singh, at the relevant time he was director of DLF's certain subsidiaries and also a key management personnel (KMP) of DLF, Sebi said.
Comments
0 comment