Delhi HC dismisses DLF plea against SEBI probe
New Delhi: The Delhi High Court on Tuesday dismissed realty major DLF Ltd's plea against market regulator SEBI's decision to probe an allegation that the realty firm had duped a businessman of Rs 34 crore.
A bench headed by Justice S Ravindra Bhat dismissed DLF's plea, upholding a single-judge bench order of the court which had also imposed a cost of Rs two lakh on it.
DLF had earlier moved the single judge-bench to quash SEBI's order dated October 20, 2011 to probe into city-based businessman Kimsuk Krishna Sinha's allegation of 2007 against real-estate company and its associate firm Sudipti Estates.
DLF had said SEBI's order was passed "erroneously and in blatant violation of the principle of natural justice."
The single judge on January 3 this year had dismissed DLF's plea against the market regulator's decision saying SEBI's order was "based on reasons."
SEBI had passed the order following a 2011 direction of the high court to it to look into Sinha's complaint against DLF Group and Sudipti Estates.
Sinha had alleged that DLF and its directors/ agents had "lured and compelled" him to transfer certain plots of land and did not fulfil the promise of developing the land and providing him higher returns.
Sinha had alleged Sudipti, DLF Home Developers Ltd and DLF Estate Developers Ltd were sister concerns inextricably linked and were part of the DLF group.
DLF has, however, said that Sudipti is a separate legal entity owned and controlled by different individuals.
The construction major in a Draft Red Herring Prospectus (DRHP), filed for a public issue in May 2006, had mentioned that Sudipti was its associate company.
The DRHP, however, had been withdrawn and a fresh prospectus was filed in January 2007 in which Sudipti was not mentioned as an associate.