India’s
capital markets regulator said Thursday it will investigate allegations leveled
against real estate company DLF Ltd. that it violated certain provisions of
disclosure and investor protection rules during its initial public offering in
2007. The investigation by SEBI–the Securities and Exchange Board of
India—follows a complaint filed by Kimsuk Krishna Sinha, alleging that Sudipti
Estates Pvt. Ltd. is an associate company of DLF and had defrauded him of about
340 million rupees.
DLF
has maintained that the group or its units had no connection with Sudipti. DLF
and Mr. Sinha couldn’t be reached for comment Thursday. The matter was
challenged by Mr. Sinha in the Delhi High Court, which recently ordered the
matter to be investigated by SEBI. According to a SEBI statement issued late
Thursday on its website, an officer will soon be appointed to investigate the
matter.
SEBI
wholetime member Prashant Saran said in the statement: “If any violations are
brought out in the investigation, the Securities and Exchange Board of India
shall proceed in accordance with law.”
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